MGTA02H3 Chapter 9: chapter 9 notes
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MGTA02H3 Full Course Notes
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Securities: stock or buy/sell bond (represent secured asset based claim on the part of investor) Primary securities market: buy or sell new stock/bond by firm or government. Investment banker: financial institution engaged in buy or resell new stock or bond (cid:0) advise company on timing and financial term for new issue (cid:0) underwriting or buying new securities, bear some risk (cid:0) create distribution network (into investor) Common share (cid:0) market value: current price of the share in secondary security market (real value of a share) price influence by: company"s profit, rumour, investor relation, stockbroker recommendation (cid:0) book value: value of common stock express as total oe divided by number of share. success company: market value > book value (cid:0) investment traits of common share. common share: risky, change value often, sometime no dividend, high growth potential (cid:0) blue chip stock: stocks of well established, financially sound firm (cid:0) market capitalization: market value of stock on stock exchange.
