Lecture 19 - 10.10.2008 - AEM220, Introduction to Business...

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AEM220, Introduction to Business Management. Friday 10/10        Securities Markets Bond and Capital Market Valuing Stocks Tips on Investing Traditional Stocks/Bonds Government Securities Certificates of Deposit Money Market or Mutual Funds Real Estate High-Risk Stock on Margin Commodities Junk Bonds Derivatives Supply side The normal transacting of business is made much easier by credit; Banks are institutions that agglomerate small quantities of money  that we want to  have access to  and obtain a profit from  lending  (liquid allocation) as opposed to  investing  (illiquid allocation) it; Different investors have different appetite for risk. Demand side Short term loans allow to even out variability; Long term loans allow to  leverage capital ... That is, if you can take a loan, and  the proceeds of your long term investment are greater than the principal and  interest on the loan, you basically have made more money on the same capital  investment!!! Bond market Coupon Rate/Interest Rate Principal Maturity Date Types - Unsecured/Debenture
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- Secured Sinking fund
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This note was uploaded on 08/28/2009 for the course AEM 1200 taught by Professor Perez,p.d. during the Fall '06 term at Cornell University (Engineering School).

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Lecture 19 - 10.10.2008 - AEM220, Introduction to Business...

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