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Class notes

Class #16 (Finance II)

What is finance?

Everyone who saves money in the bank is a investor

finance is about getting investors excess supply capital to companies or anyone whom have the demand to borrow

Investors —> Financial institution —> Companies

 

Types of financial institutions :

Banks

Pension fund

Mutual fund

 

Finance skills

Math skills to deal with uncertainties

Analytical skills to formulate problems

People skills to manage relationships with others

Communication skills

 

Stock allows you to gain:

Cash flow rights and ownership rights

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