BUS 200 Lecture Notes - Lecture 10: Market Basket, Preferred Stock, Current Yield
31 Mar 2017
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Financial markets include stock exchanges (nasdaq) and the banking system (financial markets) and capital markets (how money and financial power gets traded back and forth) Commercial banks are institutions that take deposits and make loans. Hedge fund: mutual funds for millionaires, number of investors are limited, investors must meet wealth standards. Less regulated than a mutual fund and for very wealthy people (pools of investable assets) Regulating financial markets- they were under regulated before crash of. Recent developments: sarbanes oxley act of 2002 (fair external audits, dodd-frank act of 2010 (extended authority over no depository/commercial institutions) 3 major types of securities that are traded in markets: common stock: normal shares of a firm, aka equity. Basic form of ownership in a corporations. Voting rights, rights to dividends, capital gains: preferred stock: no right to vote, receives payments call dividends (closer to a bond)
