RSM100Y1 Chapter Notes - Chapter 19: Canadian Securities Regulation, Financial Industry Regulatory Authority, The Nikkei
Document Summary
Rsm 100y chapter 19: understanding securities and investment. Stocks and bonds are known as securities because they represent asset-based claims, where stocks is a claim to ownership and bonds a claim to debt. Newly issues shares through ipos from the firm or government. Investment banker: advise the company on the timing and financial terms for the new issue, underwrite the securities during ipos for resale, create distribution network that moves shares around places. No dividends, but voting power and ownership riskiest security. Par value: face value of the share, rarely used in canada. Market value: the real value of a share, it"s the current price determined by the market reflecting the buyer"s willingness to invest in a company. Book value = owners equity/number of outstanding shares. Market value of a company"s stock listed on a stock exchange. Issued with par value, pays dividends, no voting power, less risk. Can be callable, where the firm forcibly recalls a stock for cash.
