1.3.2.

  Over to You:  What’s your Term?

Rationale
This module introduces you to many terminologies in Finance.  This is aimed at
strengthening your Finance vocabulary as you journey to learning one of the
cornerstones of the enterprise.  
Directions:  Identify at least TWO WORDS that you learn from the readings and
provide a definition for it based on (1) how it is defined by an author/author
(conceptual meaning); and, (2) how you have understood it. 

Word Conceptual Meaning My Takes

1. Finance Webster’s Dictionary
- “The system that includes
the circulation of money, the
granting of credit, the
making of investments, and
the provision of banking
facilities.”
2. Financial According to Essentials of
Management Financial Management Book
by Brigham E.F. et.al.
- “Focuses on decisions
relating to how much, and
what types of assets to
acquire, how to raise the
capital needed to purchase
assets, and how to run the
firm so as to as to maximize
its value.”
3. Financial Markets According to Essentials of
Financial Management Book
by Brigham E.F. et.al.
- “People and organizations
wanting to borrow money
are brought together with
those who have surplus
funds.”
4. Corporation According to Essentials of
Financial Management Book
by Brigham E.F. et.al.
- “Is a legal entity created by
a state, and it is separate
distinct from its owners and
managers, having unlimited
life, easy transferability of
- For me, my definition of
Finance represents money
management and the process
of acquiring needed funds,
and associate with banking,
leverage or debt.
- In my opinion, Financial
Management is means
planning, organizing, directing
and controlling the financial
activities such as
procurement and utilization of
funds of the enterprise. It
means applying general
management principles to
financial resources of the
enterprise.
- In my own context, the
Financial Markets, from the
name itself, are a type of
marketplace that provides an
avenue for the sale and
purchase of assets such as
bonds, stocks, foreign
exchange, and derivatives.
- In my own understanding,
Corporation, is a single entity
which may be comprised of
individuals or a company, but
is separate from its owners.
 ownership, and limited
liability.”
5. Equilibrium According to Essentials of - For me, Equilibrium is a
Financial Management Book situation in which economic
by Brigham E.F. et.al. forces such as supply and
- “The situation in which the demand are balanced.
actual market price equals,
the intrinsic value, so
investors are indifferent
between buying and selling
a stock.”