BU111 Study Guide - Final Guide: Sole Proprietorship, Complementary Good, Corporate Social Responsibility
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BU111 Full Course Notes
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Document Summary
Bonds characteristics (return, term, priority over stockholders), types, features, factors affecting price, calculating approximate yield to maturity, relationship between prevailing interest rates and bond prices, reading bond quotations. Common stocks and preferred stocks characteristics (return/dividends, term, priority in bankruptcy situations, voting rights), features, factors affecting price, reading stock quotations. Market conditions bull and bear appropriate investing strategies. Margin buying concept, rules, when it makes sense, potential losses and gains, calculation of margin call and margin transaction. Short selling concept, rules, when it makes sense, potential losses and gains, calculation of short selling transaction and short call. Time value of money application of appropriate formulae to problems. Note: approx. yield to maturity and margin call formula(e) not given, tvm formula(e) given without legend technological factors. Technology and marketing - implications of changing technology and demographics. Installed base, lock-in, switching costs, complementary goods, technology standards, network effects description, importance and connections between them, examples.
