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Exam (elaborations)

WGU C214 Financial Management Topic 1

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WGU C214 Financial Management Topic 1 Corporate Finance focuses on financial decision making by a firms management Investments various types of financial instruments (stocks, bonds, etc) Banking or Financial Institutions make money by paying depositors a smaller interest rate than the intere...

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  • February 24, 2024
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  • 2023/2024
  • Exam (elaborations)
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WGU C214 Financial Management Topic 1
Corporate Finance

focuses on financial decision making by a firms management

Investments

various types of financial instruments (stocks, bonds, etc)

Banking or Financial Institutions

make money by paying depositors a smaller interest rate than the interest rate charged to borrowers

Treasury Securities

generally bonds that are issued by the US government

Corporate Bonds

firms borrowing from the public

Stocks

a share of ownership in a company

Primary financial markets

markets where securities are first issued

Syndicate

a group that is temporarily formed to handle a bond or stock issue: generally large investment bank or
institutional investors

Underwriter

responsible for determining the value of the security; may purchase all the securities & then resale to
investors

Competitive sale

underwriters submit bids offering highest price/lowest interest rate; underwriter resales a slightly higher
price

Negotiated sale

underwriters submit bids, go thru interview to be selected

Initial Public Offering (IPO)

first time selling of stocks to the public; occurs in primary market

Secondary financial markets

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