MGTA02H3 Lecture Notes - Investment Banking
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MGTA02H3 Full Course Notes
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Document Summary
Business function responsible for acquiring and disbursing funds. An organization that assists in collecting and disbursing money from those that have it (investors, depositors) to those that don"t (entrepreneurs, borrowers). Sometimes called intermediaries i. e they get in the middle. Banks collect from depositors (people who have cash but no immediate need to spend it) Banks pay a small rate of interest to depositors lend to borrowers(osap loans, credit cards, car loans, mortgages) Insurance companies collect monthly/annual premiums make payments to people who have accidents. Pension fund companies collect monthly from people who are working make payments to people who are retired. Investment banks collect money from investors buying shares make capital available to entrepreneurs. Retail stores - busy before christmas / slow in jan - feb. Hotels & tourism - busy may - oct / slow nov - april. Ski resorts - busy dec - mar / slow april - nov. Construction - busy when economy growing, interest rates low.
