Management and Organizational Studies 3370A/B Lecture Notes - Lecture 7: Information Asymmetry, Tender Offer, Fixed Price

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

1. 1 deine inance and explain what is involved in the study of inance. Finance: under what terms are money (savings) allocated between lenders and savers. All parts of the inance system (personal, household, business, government and internaional) are interrelated. (eg. 2008 usa housing) Diference between finance and economics: finance studies under what terms and what channels money is being allocated. Trade money for contracts inancial securiies chances for fraud. 1. 2 list the major inancial and real assets held by canadians and the major sectors in the inancial system. Assets (owned) liabiliies (owed) = equity (net worth) Personal real asset classiicaions: residenial structures (homes), consumer durables (cars, major appliances, ie. things that last a long ime) Business real asset classiicaions: non-residenial structures (buildings, factories, etc. Inventories (unsold/unused products *could also be products owned by government), Asset acquisiions: process of obtaining new assets, also known as capital expenditure (capex) Liabiliies is to fund asset acquisiions; also called corporate inancing decisions.