[FIN 350] - Midterm Exam Guide - Ultimate 13 pages long Study Guide!
Document Summary
Have money and don"t need it (investor) People who need money but don"t have it (borrower: would owe money back to bank. Bank gives you a deposited that meets you need: takes money from depositors and gives it our in loans. An organization that is somehow transforming the money flow: depository. Taking in premiums and providing insurance coverage. The risk that you wont get the money back: interest rate risk. If interest rates go up the value of the stock will go down: liquidity risk. The ability to sell and investment easily without a significant loss of principle: political risk. Shark tank sharks are considered angles get money and help with the company because of their experience already in the industry. Help make companies go public so that the company can do a public offering: mutual fund. You are buying shares in the mutual fund not the sticks that it consists of.
