BU111 Lecture Notes - Retained Earnings, Commercial Paper, Toronto Stock Exchange
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BU111 Full Course Notes
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The basic resources that a country"s business use to produce goods and services. We will begin by examining how firms and government raise the capital (money) necessary to operate. Internal: within corporation, reinvesting profits (retained earnings: govn"t: taxes revenues. Places where people or institutions with money to invest (lender/savers) are brought together with those who require capital (borrower/spenders) Capital markets may be actual physical places (i. e. toronto stock exchange, tsx) Capital markets may also be virtual markets with no real physical location (i. e. virtual location and network that links the players in the capital market, the bond. All levels of government: for capital expansion projects, acquiring new productive capacity, to fund the start-up of a new business, federal, provincial, regional, municipal, to fund the provision of infrastructure. 12/10/2011: to fund government programs in areas such as education, health, welfare, government doesn"t create wealth, it merely distributes it (uses 45%), etc. business creates it.