FIN 301 Lecture 1: 1/10 Notes
Document Summary
Three primary areas of finance, corporate finance, institutions and markets. Financial toolbox: accounting statements, present value, risk and return models, spreadsheet modelling, the uniqueness of capital markets, debt capital markets, raising capital by issuing bonds. Interest rates reflect the base cost of capital in economy: equity capital models, raising capital by issuing stock. Financial crisis, insider trader: high frequency trading, economic freedom, free markets - hong kong #1. Zimbabwe: north korea, financial crisis, tulip bulb mania - netherlands 1637. Tulip bulbs became a luxury item and a symbol of status. Tulip bulb actually traded as contracts in taverns: record trade - 5200 guilders, markets crashed when no buyers, south sea company - england 1721. Ssc was formed to reduce government debt by exploiting trade with new. Politicians aided in bubble: corruption and trade rumors push price up as crowds buy, mass selling and market hysteria prompts mass selling, asian market collapse - 1997.
