1 of 41

Slide Notes

DownloadGo Live

Corporate expansion

Published on Dec 21, 2015

No Description

PRESENTATION OUTLINE

Corporate expansion

mr. melkonian
Photo by Truthout.org

majority of canadian business

is corporate
Photo by defwheezer

manufacturing sector alone, more than 95%

Photo by pedrosimoes7

acquire funds from...

investors, banks, friends/family
Photo by koesteran

legal status makes it most attractive

liability

bonds

fixed debt, corporation borrows from a buyer and must pay back later
Photo by pasukaru76

Buyer gets periodic interest payments, usually 6 month intervals, for a fixed rate. On maturity, holder gets full amount of original loan. Safe investment

longer the loan

higher the interest rate
Photo by Nrbelex

bond holder is not a part owner of corporation

just a creditor entitled to receive payment 
Photo by epSos.de

ownership shares

selling part of the business - purchased as an investment
Photo by Ravages

corp usually uses funds raised to get more stuff

Photo by David Reece

asset value

value of assets minus liability

book value

value at which it was originally issued
Photo by Kevin Krejci

buy shares easily through broker...

but no guarantee that you're getting book or asset value

market value

actual current price - varies
Photo by Bert Kaufmann

securities markets and trading

stock market

publicly traded companies - buy a piece of the pie
Photo by @Doug88888

stock exchange

actual building where public shares are traded

tsx

largest in country - vast majority of trade happens here
Photo by Mike Baehr

National association of securities dealers automated quotation

nasdaq
Photo by bfishadow

Traditionally for smaller and new-tech companies to list their stock. Rise in technology sector has made this popular. No central location for trading, brokers place orders with Nasdaq brokers (market makers), who concentrate on specific stocks.

Photo by Doha Sam

how to buy stock?

Photo by @Doug88888

contact brokerage firm with seat on tsx

td waterhouse

stockbroker

is your agent for all transactions
Photo by leyla.a

done in the comfort of your home

PREFERABLY in pjs - phone, internet
Photo by FrankGuido

brokers pay a fee for seat on tsx

they charge % of earnings fee to clients
Photo by MDGovpics

price of stock fluctuates

supply, demand of the share
Photo by VinothChandar

demand of a stock

influence?
Photo by jakerome

Demand for a stock

  • Current profits
  • Dividend shares
  • Degree of confidence in management team
  • General economic outlook

investors react by undervaluing stocks

when there's bad news
Photo by FonnaTasha

overvalue

when there's good news

to earn money in the stock market

can't make emotional decisions - impartial 

mutual funds

passive/safe investment
Photo by Matt Dinnery

Pay a fee, experts group together safe, diversified investments and manage funds of clients.

commodities market

raw or semi-raw materials traded in bulk

spot markets

goods traded for immediate delivery
Photo by glennharper

futures markets

prices agreed to in advance, for delivery at various dates in the future
Photo by Knight725

dow jones industrial average

indicator of general stock market - based on closing price of blue chips

considered a mirror of stock market

as a whole 
Photo by MSVG

bear market

hibernating
Photo by digitalART2

bull market

aggressive
Photo by Texas.713