MGTA01H3 Lecture Notes - Lecture 9: The Dominion Bank, Canadian Imperial Bank Of Commerce, Rbc Capital Markets

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

This is (cid:449)hat (cid:271)a(cid:374)ks do, the(cid:455) (cid:272)olle(cid:272)t (cid:272)apitals a(cid:374)d the(cid:455) gi(cid:448)e it to people (cid:894)(cid:862)organize and repackage) *finance industry and intermediary is on the exam: two kinds of capitals, debt capital: money that is lent, must be repaid, no ownership is given, lender gets interest, borrow money, loans (eg. osap) Collect from the bank (royal bank of canada, td, bank of nova scotia, cibc, bank of montreal top 5 banks) Allows people with ideas but no money to start their business. Ba(cid:374)ks (cid:272)olle(cid:272)t f(cid:396)o(cid:373) people (cid:449)ith (cid:373)o(cid:374)e(cid:455) (cid:271)ut (cid:374)o i(cid:373)(cid:373)ediate pla(cid:374)s (cid:894)(cid:862)deposito(cid:396)s(cid:863)(cid:895: equity capital: money that is given, never repaid, confers ownership, owner gets profits. Corporations sell shares to anyone who wants to invest. Investors give $, investors get sha(cid:396)es, i(cid:374)(cid:448)esto(cid:396)s (cid:862)sha(cid:396)e(cid:863) o(cid:449)(cid:374)e(cid:396)ship, i(cid:374)(cid:448)esto(cid:396)s (cid:862)sha(cid:396)e(cid:863) p(cid:396)ofit (example in the text: mast corporation) Investment dealers help them find each other and organize the transactions. I(cid:374)(cid:448)esto(cid:396)"s sha(cid:396)e: pe(cid:396)(cid:272)e(cid:374)tage of futu(cid:396)e p(cid:396)ofits a(cid:374)d (cid:272)o(cid:373)pa(cid:374)(cid:455) (cid:448)alue.