BU111 Lecture 1: Review Guide
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BU111 Full Course Notes
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Document Summary
Bonds are a form of debt for the company, set maturity date, paid out before stock holders. Market conditions: bull vs. bear market, economy, interest rates (esp. Speculation: bought or sold on belief price will soon move. Bull up good market, stocks rising buy high sell low. Current value (loan amount margin call) Current market value short selling concept, rules, when it makes sense, potential losses and gains, calculation of short selling transaction and short call o. Borrowing stocks from the broker, selling them while they are high, and buying them back when they are low, return the stocks to the broker and keep the profit. Time value of money application of appropriate formulae to problems. Technological factors o opportunities and threats of technology o opportunities: Improved operations efficiency i. e. cad, erp o threats: Information costly to develop but cheap to share. Disruptive technologies challenge the value of organizational capabilities and resources.
