Bodie Finance, Chapter 1
Bodie Finance, Chapter 1
Discussion of the curriculum Bodie, Kane, Marcus Finance text, chapter 1.
Re: Bodie Finance, Chapter 1
Bodie Chapter 1
Real Assets: Land, building machines and knowledge.
Financial Assets: Stocks, bonds, paper assets.
Fixed Income: Debt financing which has a specific repayment schedule. Resaleable on debt markets.
Equity: Ownership in a corporation. Entitles owner to a share of profits. Equities are also bought and sold on the open market.
Derivative: An asset who’s price depends on another asset. Often used for hedging.
Efficient Market Hypothesis: Markets are efficient and all new information is priced in immediately. This would suggest that security analysis is useless. The text assumes that markets are nearly, but not totally efficient.
Investment Banks: Investment banks cover the logisitics and marketing of creating new financial assets.
Venture Capitalists: Venture Capital funds new startup businesses with private equity.
Real Assets: Land, building machines and knowledge.
Financial Assets: Stocks, bonds, paper assets.
Fixed Income: Debt financing which has a specific repayment schedule. Resaleable on debt markets.
Equity: Ownership in a corporation. Entitles owner to a share of profits. Equities are also bought and sold on the open market.
Derivative: An asset who’s price depends on another asset. Often used for hedging.
Efficient Market Hypothesis: Markets are efficient and all new information is priced in immediately. This would suggest that security analysis is useless. The text assumes that markets are nearly, but not totally efficient.
Investment Banks: Investment banks cover the logisitics and marketing of creating new financial assets.
Venture Capitalists: Venture Capital funds new startup businesses with private equity.