BU111 Lecture Notes - Lecture 6: Common Stock, Life Insurance, Stock Valuation
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BU111 Full Course Notes
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Exchange rates: balance of trade, business implication: affect costs, sales, financial uncertainty. Affect economic growth (measures: aggregate output, gdp, gnp), economic stability, employment. Make notes on topics shown in slides up to and including international business & finance. Five largest account for 90% of total bank assets. Bank act limits foreign-controlled banks to <8% of total domestic bank assets. Serve individuals, business, and others: major source of short-term loans for business. Represents debt for issuing corporation or government. Lines between pillars have been blurred due to deregulation. Fixed term: principal repaid at maturity (get face value back) Secured (cid:894)if the(cid:455) do(cid:374)(cid:859)t pa(cid:455) thei(cid:396) (cid:373)o(cid:396)tgage, (cid:271)a(cid:374)k (cid:272)a(cid:374) take it a(cid:449)a(cid:455). Registered (issuer knows who they owe money too, more often) vs. Bearer (anonymous, who ever is carrying gets to cash it in) Callable: company has reserved the right to pay off the debt before the maturity date (lets companies avoid a drop in interest rates)
