MGTA01H3 Chapter Notes - Chapter 9: Scotiabank, Investment Banking, Canadian Imperial Bank Of Commerce
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MGTA01H3 Full Course Notes
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Finance: all the activities that involve locating, collecting, packaging, and redistributing capital. 2 basis people would create business if they had money, some people have money they do(cid:374)"t (cid:374)eed. Consumption: using up your money by making a final purchase. Investment: a de(cid:272)isio(cid:374) (cid:374)ot to spe(cid:374)d o(cid:374)e"s (cid:272)apital for i(cid:373)(cid:373)ediate (cid:272)o(cid:374)su(cid:373)ptio(cid:374), (cid:271)ut to put it to work so that it might produce more capital in the future. Investor: an individual or organisation that provides the capital to finance enterprise in the expectation that the enterprise will return more capital in the future. Financial intermediary: a business which acts as a go between, finding, collecting, packaging, and redistributing money from those with spare capital who want to put it to use, to those with ideas and ambitions who need capital. Loan capital/debt capital: money that is lent to a business or an individual. A loan must be repaid w/ interest (usually)
