Chapter 17 18

Chapter 17 18 - Chapter 17/18 Thursday, December 09, 2010...

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Financial system: process by which money flows from savers to users - Savers Users Financial Institutions Financial Markets Financial System - Savings is a function of many variables. - Funds can be transferred between users and savers directly or indirectly. - The Financial System/ Financial instruments - Business and governments Obligations on the part of the issuer - Money market instruments - Bonds sold by the U.S. Department of the Treasury. Government Bonds Revenue bonds are used toward a project that will produce revenue, General Obligation Bonds are not. Bonds issued by state or local governments Municipal Bonds Price is determined by risk and interest rate. Moody’s Several firms rate bonds Investment-grade Speculative/Junk Bond Ratings Bonds - Vote on major company decisions Cash dividends Price appreciation Common stock ownership claims in corporations. Preferred stock stockholders with preference in the payment of dividends.
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This note was uploaded on 05/05/2011 for the course BUS 100 taught by Professor Reeves during the Spring '11 term at Rutgers.

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Chapter 17 18 - Chapter 17/18 Thursday, December 09, 2010...

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