HISTORY 1DD3 Study Guide - Midterm Guide: Retained Earnings, Economic Bubble, Primary Market
22 Oct 2017
School
Department
Course
Professor
Document Summary
Stock market: stock exchange, allows capital to be raised= primary market, capitol. Investment capital= money you need: risk capital= money you can lose, types of corporations, sole proprietorship, partnership, can raise more capital, private corporation. Stocks sold: methods corporations use to raise capital, retained earnings, bank loans, bonds, stocks, investments, savings account, bonds, government bonds, federal, state, municipal, corporate bonds, debentures (unsecured) bonds, mortgage bonds, junk (high risk/ high yield) bonds, mutual funds. Buy low sell high: bulls- believe calie of stock will rise. Buying on margin: buying some of your own but a percentage of borrowed money, selling short. Sell borrowed stock at high price bit buy it back later at lower price: then return stock to lender, negative: no limit on amount of money you can lose. Coming of the great depression: causes of stock market crash, speculative fever.
