金融专业英语重要概念和理论.pdf

❶Economy: An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services . ❷Finance: Finance is a field that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty. ( A key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time. Finance aims to price assets based on their risk level and their expected rate of return. ) Bodies finance: finance is the study of how people allocate scarce resources over time. Financial system is the set of markets and other institutions used for financial contracting and the exchange of assets and risks. wiki:A financial market is a market in which people and entities can trade financial securities. Mishkin: financial market is a market in which funds are transferred from people who have an excess of available funds to people who have a shortage. ❸Corporate finance: Corporate finance is about how toincrease the value of the firm by dealing with the sources of funding and the capital structure of the firm.——(The primary goal of corporate finance is to maximize or increase shareholder value.) ——or say corporate finance is a branch of finance dealing with financial decisions of firms. ❹Option: an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset at a specified strike price on or before a specified date. more about option The seller has the corresponding obligation to fulfill the transaction – that is to sell or buy – if the buyer (owner) exercises the option. The buyer pays a premium to the seller for this right. An option that conveys to the owner the right to buy something at a specific price is referred to as a call; an option that conveys the right of the owner to sell something at a specific price is referred to as a put. In basic terms, the value of an opt