RSM100Y1 Lecture Notes - Lecture 6: Canadian Dollar, Money Supply, Stock Exchange
31 Mar 2016
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Document Summary
Increasing the supply from each country brings down the overall global prices. Lower prices of oil means everything is cheaper, lower transportation costs. Canadian dollar and oil prices *exam question. Debt financing borrowing money, save you on taxes. Equity financing- investing in a part of your company, not expected to be paid back, expected to make a dividend. Common shares- bear the most risk in the companies, get whatever left over of the dividends. Preferred shares- paid at the liquidation of the company before common shares. Callable- the company can buy back the stock, option of the company. Redeemable- you can sell your share back to the company, option of the investor. M1: currency in circulation and chequing accounts. If interest rates go up, money supply goes down, more profitable to leave money in the bank. Prospectus- set of financial information, financial statements and ratios. Stock exchange- primary markets- sells a market for the very first time.
