ECO 1002 Lecture Notes - Lecture 13: Stock Market, Bond Market, Quantitative Easing
19 Dec 2016
School
Department
Course
Professor
Document Summary
Yesterday walmart went down 10% in stock, went down 30 billion dollars. They estimated that their revenue is going to drop 12% Walmart is trying to convert itself into a hybrid online and in store type. Amazon has premium and has fast delivery ( anytime, weekends) Amazon doesn"t make money but stock keeps increasing because: they are becoming a new player in the market where they are a major player, then they raise prices. Purpose of financial markets they take money and give you something you want or reinvest it: raise large money through stocks and bonds, ex ali baba became public and sold stock, 50 billion dollars for their company. Bond market is bigger than stock markets in dollars. Us gov borrows 40-50 billion dollars, but you have to pay interest. Clinton: bonds issued for corporations to raise money etc. When interest rates increase, the bond prices of existing bonds go down in price vise vers.
