Published December 17, 2024 | Version v1
Conference paper Open

THE THEORY OF RATIONAL EXPECTATIONS: FINANCIAL JARGON IN CAPITAL MARKETS.

  • 1. First year student of Samarqand institute of Economics and Service Banking and finance faculty
  • 2. Scientific supervisor

Description

Financial jargon in the capital markets refers to the specialized 
vocabulary used by professionals (such as investors, traders, analysts, and financial 
managers) in the buying, selling, and trading of securities. The capital markets, 
consisting of both equity markets (stock markets) and debt markets (bond markets), 
involve complex transactions and instruments that require precise terminology for 
effective communication. Understanding this jargon is essential for anyone working in 
or studying capital markets, as it helps in analyzing market conditions, making 
informed investment decisions, and managing risks.Key concepts include equity,
representing ownership in companies through stocks, and bonds, which are debt 
instruments used by issuers to raise capital

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References

  • 1.Black, F., & Scholes, M. (1973). The Pricing of Options and Corporate Liabilities. Journal of Political Economy,(3-81).
  • 2.Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (10th ed.). McGraw-Hill Education.
  • 3.Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley.
  • 6.Merton, R. C. (1974). On the Pricing of Corporate Debt: The Risk Structure of Interest Rates. Journal of Finance,(2-29).