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MGTA02H3 (143)
H Laurence (21)
Lecture

Chapter 9-Understanding Securities and Investments

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Department
Management (MGT)
Course
MGTA02H3
Professor
H Laurence
Semester
Winter

Description
Chapter 9: Understanding Securities and Investments Securities Markets Securities Stocks and bonds (which represent a secured-asset-based claim on the part of investors) that can be bought and sold - $94.NK4O078K,;0.O,L2843842041,.47547,9L438,8sets because each share represents part ownership - Bonds represent strictly financial claims for money owed to holders by a company. - The market in which stocks and bonds are sold are called securities markets Primary and Secondary Markets for Securities Primary Securities Markets The sale and purchase of newly issued stocks and bonds by firms or governments - Selling to 1 buyer or a small group of buyers is called private placements, allows business to keep plans confidential Investment Banking Investment Banker Any financial institution engaged in purchasing and reselling new stocks and bonds Provide these three types of investment banking services: - They advise the company on the timing and financial terms for the new issue - By underwriting (buying) the new securities, investment bankers bear some of the risk of issuing the new security - They create the distribution network that moves the new securities through groups of other banks and brokers into the hands of individual investors Secondary Securities Market The sale and purchase of previously issued stocks and bonds Stocks Common Shares Market Value The current price of one share of a stock in the secondary securities market; the real value of a share - can be effected by: - Objective factors a c425,385741L98 - Subjective factors rumours, investor relations, stockbroker recommendations Book Value ,O:041,.42243894.N0[570880,8949,O4Z307806:L9L;L0-9K03:2-07418K,70841894.N Blue-Chip Stock Stocks of well-established, financially sound firms
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