MGMT 1P93 Lecture Notes - Lecture 9: Sinking Fund, Private Placement, Value Investing
30 Mar 2015
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Capital gains: can buy low and sell high. Pre-emptive right: first right to buy stock on release to keep current percentage of ownership. Right to residual claim on assets: after everyone else gets paid you have a right to receive compensation if business goes bankrupt. Long term debt issued by corporation or government. Callable bonds have provisions for early redemption, typically higher interest rates. Convertible bonds can be traded at any time for an equal amount of company stock, typically lower coupon rate. Serial bonds have unique maturity rates and help spread out payments. Companies may create sinking fund to assist in repayment. Toronto stock exchange: sells stocks that have a ticker price of more than 5 dollars. Otc market: sells other stocks that are less than 5 dollars in value. Canadas only exchange for senior stock; an electronic trading environment and no longer a physical trading floor. Provincial and territorial regulations govern the securities markets.
