Management and Organizational Studies 1023A/B Lecture Notes - Lecture 6: Commercial Paper, Third Market, Futures Contract

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

Document Summary

Corporate financing decisions: financial assets: what individual lent to another; one"s assets/liabilities, national balance sheet accounts nbsa: produced by statscan; useful source of data, basic idea behind the nbsa: take financial data of major agents. Persons and unincorporated business grouped household sector account. 4 major ways of financing: personal finance, government finance, corporate finance. Households: the major real assets are houses, consumer durables ( like washing machines, cars) and so on, offsetting these financial assets are billions of dollars in consumer credit (credit cards) Intermediation: transfer of funds from lenders to borrowers. 3 channels: direct intermediation: non-market transaction; exchange negotiated between borrower and lender, also direct requires help to find suitable lenders; help from market intermediaries, market intermediary: entity that facilitates working of markets and helps provide direct intermediation, a. k. a. Insurance companies are contractual savers because in most cases, the premiums are paid on a monthly basis so that the insurers receive a study flow of money.