Examlex
The value the market assigns to a firm's securities is a function of the expected cash flows that come from owning the securities and the risk of actually receiving those cash flows.
Agency Relationship
A legal and fiduciary relationship where one party, the agent, acts on behalf of another, the principal, in business transactions.
Agent's Negligence
A failure by an agent to exercise the care, diligence, and skill that a reasonably prudent person would exercise in similar circumstances.
Principal
Principal refers to the original sum of money loaned or invested, before interest, or the main party to a transaction or agreement.
Damages
A sum of money awarded in compensation for loss or injury caused by the wrongful act of another party.
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