{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FIN401-Chapter 1 notes

Fin401 chapter 1 notes

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 1: Investments – Background and Issues and Investments and Financial Assets Investments Essential nature of investment → Reduced current consumption Reduced → Planned later consumption Planned Real assets → Used to produce goods and services produce Financial assets → Claims on real assets Claims Major Classes of Financial Assets Major Debt → Money market instruments Money → Capital market instruments Capital Common stock Common Preferred stock Preferred Derivatives Derivatives Corporations Corporations Separation of ownership and management → Owners (principals) don’t equal managers (agents) (agents) → Agency issues/costs Agency Corporate governance and ethics → Accounting scandals Accounting → Misleading research reports Misleading → Auditors: conflict of interest Auditors: → Sarbanes-Oxley Act Sarbanes-Oxley The Investor’s Portfolio The Asset allocation Asset → Choice among broad classes of assets broad Security selection Security → Choi...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern