FIN-3403 Lecture Notes - Lecture 32: Retirement Savings Account, Current Liability, Savings Account
Document Summary
Sole prop. and partnership both gain full profit and a(cid:396)e o(cid:374)l(cid:455) ta(cid:454)ed o(cid:374)(cid:272)e a(cid:374)d a(cid:396)e easie(cid:396) to (cid:272)(cid:396)eate. Ca(cid:374) also o(cid:374)l(cid:455) ha(cid:448)e as (cid:373)u(cid:272)h (cid:272)apital as o(cid:449)(cid:374)e(cid:396)s" pe(cid:396)so(cid:374)al assets" (cid:448)alue. Co(cid:396)po(cid:396)atio(cid:374) is (cid:271)ette(cid:396) at (cid:396)aisi(cid:374)g (cid:272)apital, has limited liability to amount invested, and is more popular (can also issue shares of stock). An agency is a relationship between managers and owners (shareholders). Maximize stockholders wealth and stock price: define capital. Money in the form of cash: define primary market. A market which involves a corporation or governmental agency selling a security to an outside party in a capital market as a form of funding: define secondary market. A market in which an already-sold security is traded with bid prices/ask prices to another buyer in dealer or auction markets: compare and contrast dealers with brokers. Dealers buy the security from the seller, hold the security, and then resell the security to another (cid:271)u(cid:455)e(cid:396) at a p(cid:396)ofit.
