MGTA01H3 Chapter Notes - Chapter 9: Canadian Imperial Bank Of Commerce, Oligopoly, Cibc World Markets

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Finance locating, collecting, packaging and redistributing capital. How do entrepreneurs and people with capital find each other. Finance all activities that involve locating, collecting, packaging, and redistributing capital. Finance industry consists of banks, investment dealer, pension funds, insurance companies and other businesses. Financial industry does not produce money but help businesses, individuals, and organisations find money. People who need capital business, managers, entrepreneurs. People who have capital most likely people who are busy working and too busy to spend. How capital is used consumption versus investment. Consumption using up your money by making a final purchase (i. e. spending on clothing) Investment decision not to spend one"s capital for immediate consumption, but to put it to work so that it might produce more capital in the future. A person that works immediately after high school vs. a person who goes to university and works after will be paid more in the long-run. Essentially, you are channelling your capital into tuition.