International Corporate Finance

Flashcards covering essential vocabulary and concepts from International Corporate Finance.

Capital Markets

Financial markets for buying and selling equity and debt instruments.

Market Efficiency

The degree to which stock prices reflect all available, relevant information.

Weak Form Efficiency

A market is weak form efficient if current prices reflect all historical prices.

Semi-Strong Form Efficiency

A market is semi-strong form efficient if current prices reflect all publicly available information.

Strong Form Efficiency

A market is strong form efficient if prices reflect all information, both public and private.

Primary Markets

Markets where new securities are issued to raise capital.

Secondary Markets

Markets where previously issued securities are traded among investors.

Anomalies

Patterns in stock price movements that contradict the efficient market hypothesis.

Behavioural Finance

The study of how psychology affects investor behaviour and market outcomes.

Efficiency Hypothesis

The theory that it is impossible to consistently achieve returns above average market returns.

Technical Analysis

The analysis of historical price movements to forecast future price fluctuations.

Fundamental Analysis

The evaluation of a security's intrinsic value by analyzing related economic and financial factors.

Dividend Policy

A company's approach to distributing profits back to shareholders in the form of dividends.

Opportunity Cost

The potential loss of other alternatives when one alternative is chosen.

Internal Finance

Capital generated within the company, such as retained earnings.

External Finance

Capital raised from outside the company, including debt and equity financing.