MGTA02H3 Lecture Notes - Tim Hortons, Investment Banking, Investment
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MGTA02H3 Full Course Notes
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Rights of ownership: voting, dividends, growth in value. It is evidence of part ownership in a corporation. Here"s a share in: the walt disney company. Selling shares in the business increases 29646$ available. The are selling part of their business to new owners. Because a share confers rights and benefits of ownership: Right to vote at annual meetings of shareholders. Right to share in profits of business. (typically, dividends) Gains to value of shares (caused by the growth) Collect, package and distribute funds from investors to companies. Advise entrepreneurs on timing, pricing and marketing of shares to investors. Corporations helped by investment bankers and securities dealers. Market for buying shares when first sold by corporations. Because they represent part ownership in a corporation. But - there are risks: the business could fail. Subsequent sales of shares, between members of public. Shares change hands between members of the public. Money changes hands between members of the public.
