B A 323 Lecture Notes - Lecture 1: Corporate Finance, Capital Market, Behavioral Economics
Document Summary
Finance - system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities. People have excess funds that gets borrowed by people or organization. Nuts and bolts of financing to raise capital. How much and what types of assets to acquire. How to raise the capital needed to purchase assets. How to run the firm so as to maximize its value. Maximize the value of the firm (shareholder value) Assets - anything that you buy and can sell for money. Where borrowers and savers come tighter and a transaction can occur. Capital markets - where interest rates, along with stock and bond prices, are determined. Also studded here are the financial institutions that supply capital to businesses. Bring together "savers" who have money to invest and businesses, individuals, and other entities that need capital for various purposes. Includes banks, investment banks, stockbrokers, mutual funds, insurance companies.
