Management and Organizational Studies 1023A/B Lecture Notes - Insider Trading, Systematic Risk, Third Market

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Kate Helsen

Document Summary

Management serves as a sort of intermediary for the best interest of the shareholder. Manager"s role is to ensure conflicting interests are satisfied. Contractual claims eg. salary owed for working for two weeks. Under contract that these claims will be satisfied. Finance function: investing funds in the right places and getting returns back to investors. Day to day decisions: looks at current assets and liabilities short term investments critical to the company eg. having the right amount of inventory. Manager must generate money by going to outside financial markets. Investors: anyone that lends or gives a company money. Investors have expectations on return either dividends or reselling at a higher price. *stakeholder anyone who invests in a company creditor, employee, government. Profits must be considered in relation to the investment. eg. company makes. Must consider the amount of shares to the amount of profit often better to issue debt. Consider risk as well some projects are riskier than others.