Management and Organizational Studies 2277A/B Chapter 10: Chapter 10

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Barry Hawn

Document Summary

Should always consider paying off existing loans before investing. Several different types of savings available: like: term deposits, gics, savings bonds, money market funds. Are certificates that represent partial ownership of a firm firms issue shares to obtain funds to expand their business operations investors but shares when they believe they may earn a higher return than those offered on alternative investments. Shares can be traded on primary or secondary markets. Primary market: market in which newly issued securities are traded: can raise funds by issuing new shares in primary market initial public offering (ipo): first offering of a firms shares to the public. Secondary market: market in which existing securities such as debt securities are traded: allows investors the opportunity to sell shares to other investors at any time. On a typical day more than 1 million share of any large firm are traded in the secondary market. Very risky, requires skills, not recommended for most investors.