FNCE10002 Lecture Notes - Lecture 1: Mathematical Finance, Compound Interest, Cash Flow
Document Summary
Introduction to principles of finance & introduction to financial. Mathematics i: overview of the finance discipline, finance is the study of how individuals, businesses and institutions acquire, spend and manage financial resources, overview of the financial system and markets. It does not raise funds for issuers but a liquid and efficient secondary market greatly assists the operations of the primary market: provide investors with liquidity this transforms the maturity of funds. Identify the price (or value) of the securities. Identify investors who are interested in securities who could be approached to supply funds in the primary market: overview of different types of firms, the corporation. 1. 1 the four types of firms: sole proprietorships, owned and run by one person. Sole proprietorships: very small with few, if any, employees, most common type of firm in the world, straightforward to set up, limitation, no separation between the firm and the owner.