BUSN 110 Chapter Notes - Chapter 10: Institutional Investor, Private Placement, Federal Reserve Act
Document Summary
Chapter 10: financial markets allocating financial resources. Investment banks: specialize in helping firms raise financial capital by issuing securities in primary markets. Laws governing financial markets: federal reserve act of 1913, established federal reserve system as the central bank of united. Common stock: basic form of ownership in a corporation. Preferred stock: gives its holder p reference over common stockholders in terms of dividends and claims on assets. Bond: formal debt instrument issued by a corporation or government entity. Convertible securities: bond or share of preferred stock that gives its holder the right to exchange it for a stated number of shares of common stock. Mutual fund: institutional investor that raises funds by selling shares to investors and uses the accumulated funds to buy a portfolio of many different securities. Exchange-traded fund: shares traded on securities markets that represent the legal right of ownership over part of a basket of individual stock certificates or securities.
