100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
AFM 121 Final Exam Questions & Answers 2023/2024 $8.49   Add to cart

Exam (elaborations)

AFM 121 Final Exam Questions & Answers 2023/2024

 32 views  0 purchase
  • Course
  • AFM 121
  • Institution
  • AFM 121

AFM 121 Final Exam Questions & Answers 2023/2024 What is a market? - ANSWER-- has buyers and sellers - we exchange capital in a capital market - capital goes from those who have it to those who require it - this exchange is done because those that have extra wealth can provide capital an...

[Show more]

Preview 2 out of 9  pages

  • September 14, 2023
  • 9
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
  • AFM 121
  • AFM 121
avatar-seller
Bensuda
AFM 121 Final Exam Questions &
Answers 2023/2024

What is a market? - ANSWER-- has buyers and sellers

- we exchange capital in a capital market

- capital goes from those who have it to those who require it

- this exchange is done because those that have extra wealth can provide capital and get a return



3 components of the transfer of capital - ANSWER-financial markets, financial instruments,
intermediaries



What is capital? - ANSWER-human capital:

- people in the labour force



financial/investment capital:

- savings of people, corporations, and governments



direct investment - ANSWER-investing in things like land, real estate, or equipment



indirect investment - ANSWER-invest in financial stocks, bonds, or treasury bills



we want capital to be... (capital efficiency entails 3 things) - ANSWER-- mobile

- scarce

- sensitive



if i have capital to invest, i am only going to do so if it is... - ANSWER-- easy

- cheap

- generates a good return

, institutional investors - ANSWER-pension funds (ontario teachers, Canada Pension PLan Invest Board),
mutual funds (Trimark, AGF)



retail investors - ANSWER-individuals like us (citizens)



foreign investors - ANSWER-- can include foreign retail, institutional and government investors

- investments are made directly in Canadian firms or through stocks/bonds for Canadian firms listed on
foreign exchanges



financial instruments - ANSWER-the mechanisms by which capital is transferred



debt - ANSWER-- funds that are borrowed

- these funds are paid back at a specific date (the maturity date)

- interest is paid between the borrowing and maturity date



equity - ANSWER-- typically in the form of stacks/shares in a company (ownership)

- you own part of the company when you are an equity investor

- have voting privileges and may receive regular dividend payments



investment funds - ANSWER-- buys and sells stocks/bonds (typically through a mutual fund)



derivatives - ANSWER-- these products derive their value from another asset (stock, bond, currency)

- is often used for hedging



private equity - ANSWER-- invest in both debt and equity

- investments are typically made directly in companies rather than purchasing stocks or bonds

- funds are provided by pension funds, endowments, or wealthy individuals

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $8.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

82191 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$8.49
  • (0)
  Add to cart