BU111 Study Guide - Final Guide: Common Stock, Preferred Stock, Capital Gain
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BU111 Full Course Notes
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Elements: inflation/deflation, interest rates, employment rates, exchange rates, balance of trade, productivity, significance. Affect economic stability, employment, economic growth (measures output, Five largest account for 90% of total bank assets. Bank act limits foreign controlled banks to <8% of total domestic bank assets. Major source of short-term loans for businesses. Competition from foreign banks: pillar #2 alternate banks. Meridian: pillar #3 specialized lending/saving intermediaries. Ex kevin oleary: pillar #4 investment dealers. Facilitate trade of stocks, bonds and other products in securities markets. Bonds: legal binding agreement, fixed rate of return, often paid semi annually (coupon, fixed term principal (face value) repaid at maturity (maturity date, priority over stockholders, sunlife 5. 3 of 2021 at 91. 75. Yield: percentage return on any investment, helps us compare investments, yield = what you made/what you paid = intrest+capital gain/what you paid. Capital gain = face value purchase price. In bu111 always use a face value of . Assumes you will hold the bond until maturity.
