RSM230H1 Lecture Notes - Lecture 1: Capital Formation, Execution Unit, Initial Public Offering
22 Sep 2016
School
Department
Course
Professor
Document Summary
Platform on how we engage in certain forms of financial activities. Connecting borrowers and lenders: how that happens, what are the mechanisms, how co-ordination happens. Started where people give up to their kings: low incentives for people to work. Temple bank: deposit surplus (people get paid for the surplus) For companies, wealth is considered equity, net worth. trillion assets in the worth divided by 7 billion people = /person (average wealth of humanity) In canada, there is around trillion of wealth, 35 million citizens, average wealth is around k/ person. How is canada well off, institutions unlock the extra resources. Design our institution for non-financial people to use it. Skim the savings from commoners to pool a fund to help large projects that create value for the country. Individuals in canada own most of the wealth, 75% of canada"s debt is owed to the canadians (largely self-financed)
