EN.660.100 Lecture Notes - Lecture 3: Shares Outstanding, Firm Foundation, Treasury Stock

• School: JHU
• Department: EN Center for Leadership Education, EN Entrepreneurship and Management
• Course: EN.660.100
• Professor: Aronhime

Document Summary

Richard sylla modern financial system national mechanism to settle payments to raise and allocate funds and manage the risks associated with exchange. Investment banks - securities in the primary market // sell side trading securities for cash or securities // buy side funds who consume the products of the sell-side to maximize return. Glass-steagall act (1929) separated ibanks from commercial banks repealed by. Commercial banks collect deposits, make loans , buys corporate and government bonds // liabilities = deposits, assets = loans and bonds. Fiat currency worth nothing intrinsically and not backed. Primary markets issuance of new securities // underwriting selling new security. Secondary market one investor to another. Securities and exchange commision watches over the stock exchange. Shares outstanding shares currently held by investors. Treasury stock stock bought back by company. Stock splits dividing of a company"s existing stock into multiple shares. Market capitalization stock price multiplied by the number of shares outstanding.