BU111 Lecture Notes - Lecture 8: Interest Rate, Risk Premium
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BU111 Full Course Notes
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Document Summary
Make notes on topics shown in slide up to and including international business and finance. Understand the role of each one in our economy. Lines between pillars have been blurred due to deregulation - understand what rules are being changed and what effect this has on our pillars. Where stocks, bonds, and other securities are sold. Primary markets - the first place a stock or bond comes to exist. When a company decides to make the stocks public, they initiate and ipo (initial public offering) Secondary markets - trades between other investors. Represents debt for issuing corporation or government. Legal, binding agreements - legal action may be taken if agreement is unfulfilled. Fixed rate of return (often paid semi-annually) Callable - a bond that can be paid off by the company before its maturity date. Serial - a bond that makes it less risky for investors.
