Chapter 17: Financial Markets
Q.10
Why can firms not just use their own profits for financial capital, with no need for outside investors?
Q.11
Why are banks more willing to lend to wellestablished firms?
Q.12
What is a bond?
Q.13
What does a share of stock represent?
Q.14
When do firms receive money from a stock sale in
their firm and when do they not receive money?
Q.15
What is a dividend?
Q.16
What is capital gain?
Q.17
What is the difference between a private company and a public company?
Q.18
How do the shareholders who own a company choose the actual company managers?
Q.19
Why are banks called 鈥渇inancial intermediaries鈥?