FIN 305 Lecture Notes - Lecture 8: Takeover
Document Summary
Look for definitions in book---they will be on exam. Specialize in certain services that would be difficult for individual participants to perform, such as matching buyers and sellers of securities. (know definitions from the book. ) The financial system ***know the definitions from the book---more than just what is listed here. Documents that represent the right to receive funds in the future: debt securities/credit (borrowed funds) incurred by the issuer. Have to pay money back in the end: equity securities/stocks. When a company doesn"t want to be purchased (or purchased by a particular buyer. The anheizer-busch family company buy-out is the largest hostile takeover in history. Hostile takeovers only work with publicly traded companies. Categorized between 2 dimensions: new vs. "used" Allows for a change in the ownership of the securities: length of time. Trade securities that mature in one year or less. Trade securities with maturities greater than one year.
