S1
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Econ does not account for risk
Econ is 1 period of time
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Vlauation is what were tyring to do
○ Bond
○ Value of choice
■ Using risk
○ Book vs ma
S2
S3
S4
Capital is usually always cash (could be human)
S5
Profit is not value
Finance is based on growing value
S12
Us bond is 0 risk. We have never defaulted on
very little returm
Certificate of deposit in bank little riskier
Corporate bonds a little more risk
Stocks more riskier
Options even more riskier
so can demand more reward
S19
1st time initial public offering (IPO)
Busines govt (need $ for capital)
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securities
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Primary
US households (has $)
2nd+ seasoned enquiry offering SEO
S20
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Secondary markets
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US households