FIN 2800 Lecture 1: Finance Chapter 1
Document Summary
Class 1 introduction to evaluation of financial performance. Goal of finance: maximize shareholder wealth: make decisions that increase wealth of shareholder, goal is not profit. Money market: market that deals with investment securities that have a maturity of 1 year or less (short-term nature) overnight re-purchase agreements; short term, very safe, companies that have or need short term cash. Capital market: original maturity of 1 year or more (long term securities); permanent financing; different markets. Primary market: market of original issue, first issued and receives first investment, originally raises the funds, need to have an active secondary market.
