MGTA01H3 Chapter Notes - Chapter 9: Financial Institution, Retained Earnings, Toronto Stock Exchange
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MGTA01H3 Full Course Notes
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Document Summary
Securities: stocks and bonds (which represent a secured-asset-based claim on the part of the investors) that can be bought and sold. Stockholders have claim on some of a corporation"s assets, because each share represents part ownership. Bonds represent financial claims for money owned to holders by a company. The market where stocks and bonds are called securities markets. Primary securities market: the sale and purchases of newly issued stocks and bonds by firms or government. New securities are sometimes sold to one buyer or a small group of buyers. These private placements allow the businesses that use them to keep their plans confidential. Most new stocks and some bonds are sold to the wider public market. To bring a security into the market, the corporation must get approval from a provincial securities commission. Also needs the services of an investment banker. Investment banker: any financial institution engaged in purchasing and reselling new stocks and bonds.
