ECON 2I03 Study Guide - Final Guide: Financial Engineering, Visa Inc., Disintermediation
12 Dec 2016
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Financial market: any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies, and derivatives. (eg. capital, derivative, money, and currency markets) Financial markets promote economic efficiency, and are a key factor in promoting economic growth. Money: anything that is generally accepted in payment for goods and services or to pay off debts. Money supply is the total quantity of money in the economy. Stocks: financial securities that represent partial ownership of a firm; also known as equity (i want 50% of the equity) Black monday occurred on october 19, 1987 where a drop of 11% drop of stock prices (worst in history) Dividends: payouts to shareholders after keeping some profit. Bond: a is a security issued by a corporation or the government promising to pay a fixed amount of money (think runescape, if you buy a bond, you can save it and turn it into membership)
