COMM 308 Chapter Notes - Chapter 1: Toronto Stock Exchange, Takers, Commercial Paper

• School: Concordia University
• Department: Commerce
• Course: COMM 308
• Professor: Raad Jassim

Document Summary

1. 1 finance defined finance - study of how and under what terms savings (money) are allocated between lenders and borrowers financial securities (pieces of paper) are financial contracts whenever funds are transferred. Net worth/equity: difference between value of what is owned and what is owed. Real assets real asset - tangible thing that composes personal and business assets. Financial assets financial asset - claim that one individual or institution has on another. Four major areas of finance: personal finance, government finance, corporate finance, international finance. Two major financial assets of household sector: market value of investments in shares, market value of investments in insurance and pensions. Overview financial intermediary - invests funds for others and changes transaction natures. Market intermediary - facilitates market workings and helps provide direct intermediation but does not change transaction nature. Channels of intermediation intermediation - transfer of funds from lenders to borrowers.