MGTA01H3 Chapter Notes - Chapter 9: Canadian Bankers Association, Financial Intermediary, Investment Banking

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Finance locating, collecting, packaging, and redistributing capital. Finance: all the activates that involve locating, collecting, packaging, and redistributing capital: finance industry consists of banks, investment dealers, pension funds, insurance companies, etc. How capital is used consumption versus investment. 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 (cid:449)ork so that it might produce more capital in the future. Investor: an individual or organisation that provides the capital too finance enterprise in the expectation that the enterprise will return more capital in the future. Financial intermediary: a business which acts a go-between, finding and collecting and packing and redistributing money from those with spare capital who to put it into use, to those with ideas and ambitions who need capital. Loan capital or debt capital: money that is lent to a business or an individual. A loan must be repaid, usually with interest.