HIGHLY EFFICIENT
A market where all available information is priced in
What is an efficient market?
The method used to compare assets of different useful lives
What is Effective Annual Cost?
What is yield to maturity?
The kind of market where companies sell securities direct to investors
What is a primary market?
It's what DCF stands for
What is discounted cash flow?
The name for the idea that markets are efficient, for all practical purposes
What is the Efficient Market Hypothesis?
The thing to do with future costs when calculating an Effective Annual Cost
What is discount them to the present?
The kind of price when a bond is selling for less than face value
What is a discount price?
The kind of market where investors sell securities to each other
What is a secondary market?
The difference between a project's cost and the discounted value of its cash flows
The odds of beating the market in the long run, according to the EMH
What is very low?
The thing by which we divide the NPV of costs when finding the Effective Annual Cost
What is the annuity factor?
The kind of price when a bond is selling for more than face value
What is a premium price?
The largest broker market for primary and secondary trading
What is the NYSE?
The rate of return that makes NPV zero
What is IRR?
The form of efficient markets where even insiders can't beat the market
What is strong form?
The payment to use when finding an annuity factor on the calculator
What is $1?
The kind of price when a bond's YTM is higher than its coupon rate
What is a discount price?
The largest dealer market for primary and secondary trading
What is the NASDAQ?
A decision criteria that ignores TVM, but is biased toward liquidity
What is the payback period?
The form of efficient markets where only historical market trends are priced in
What is weak form?
The correct asset to choose when comparing two Effective Annual Costs
What is the one with the smaller negative NPV?
The rate of return, when a bond is selling for face value
What is the coupon rate?
Dealer markets for primary and secondary trading, including the NASDAQ
What are OTC markets?
The decision criteria that breaks down when projects are mutually exclusive
What is IRR?