COM 371 Chapter Notes - Chapter 1: Market Capitalization, Capital Market, Money Market
15 Jan 2016
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Define finance and explain what is involved in the study of finance: finance is the study of how and under what terms savings (money) are allocated between lenders and borrowers. Finance is not just about how resources are allocated but also under what terms and what channels the allocations are made. As a result, the study of finance requires a basic understanding of securities and corporate law and the institutions that facilitate and mentor this exchange of funds. List the major financial and real assets held by canadians and the major sectors in the financial system: the four sectors are government, business, households, and non-residents. On an aggregate level, the first three sectors own real assets. Households own positive net financial assets, while governments and businesses own negative net financial assets, which mean debt. Non-residents own a small portion of positive net financial assets.
