Intro to Finance Sterling Discernment

sets overall financial strategy treasurer responsible for financing, cash management, and relationship with banks and other financial institutions that hold the firms securities. controller responsible for budgeting, accounting, and taxes. Ensures money is used efficiently Main goal of shareholders Maximize the current market value of shareholders' investment in the firm. opportunity cost of capital minimum acceptable rate of return on capital investment; aka hurdle rate agency problems managers are agents for stockholders, but the managers may act in their own interests rather than maximizing value stakeholder anyone with a financial interest in the firm blockholder individual investors that hold 5% or more of the company's shares financial market Market where securities are issued and traded primary market market for the sale of new securities by corporations secondary market