Definitions Essay Example | Topics and Well Written Essays - 500 words

Definitions - Essay ExampleFinancial System - system that enables transfer of money between savers or investors/lenders and borrowers and may also pertain to the set of implemented procedures that track the financial activities of the company.Diversification - a guess management technique that mixes a wide variety of investments within a portfolio and strives to smooth out disorganised risk events in a portfolio so that the positive performance of some investments will neutralize the oppose performance of others.Repurchase Agreement - (repo for short) is a type of short-term loan much used in the money markets, whereby the seller of a security agrees to buy it back at a specified worth and time the seller pays an interest rate, called the repo rate, when buying back the securities.US Treasury Security - government debtissued by the fall in States Department of the Treasurythrough theBureau of the Public Debt treasurysecuritiesare thedebtfinancing instruments of theUnited States f ederal government, and they are often referred to simply asTreasuries.OTC Markets - decentralized (Over-The-Counter) markets of securities not listed on an permute where market participants trade over the telephone, facsimile or electronic network instead of a somatogenetic trading floor.Adverse Selection - also called anti-selection or negative selection refers to a market attend in which bad results occur when buyers and sellers haveasymmetric information(i.e. access to different information) the bad products or services are more likely to be selected.Moral Hazard - The risk that a companionship to a transaction has not entered intothe contract in good faith, has provided misleading information about its assets, liabilities or credit capacity, or has an incentive to take unusual risks in a desperate attempt to stool a profit before the contract settles.Money - a medium that can be