S1 ● ● Econ does not account for risk Econ is 1 period of time ● 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) /\ | investing | \/ securities /\ | | Primary US households (has $) 2nd+ seasoned enquiry offering SEO S20 \ \ Secondary markets \ US households