BUS 1 Lecture Notes - Lecture 4: Institutional Investor, Mutual Fund, United States Treasury Security

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24 Nov 2020
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Securities - investment certificates that represent equity (ownership in org) or debt (loan to issuer) Institutional investor - professionals who are paid to manage other people"s $ Primary - new securities are sold to public. Secondary - old(already issued) securities are bought/sold/traded among investors. Investment bankers - helps companies raise long term financing. Stockbroker - person who"s licensed to buy+sell securities on behalf of clients: work for brokerage firm and execute order customers place for stocks, bonds, mutual funds etc. Us treasury sells (3) major types of federal debt securities. ** all 3 are risk free bc they"re backed by us govt ** Municipal bonds - issued by states/cities/counties etc: attractive to investor bc interest earned is exempt from federal income tax. Letter grade assigned to bond issues to indicate quality/level of risk.

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