Finance 300 ( CSULB Yulong Ma) Exam 1 Chpt 1, 4, 5 Question and answers correctly solved 2024

Finance 300 ( CSULB Yulong Ma) Exam 1 Chpt 1, 4, 5 Question and answers correctly solved 2024 Finance 300 ( CSULB Yulong Ma) Exam 1 Chpt 1, 4, 5 The four basic Areas of Finance are? - correct answer 1. Corporate Finance = Business Finance 2. Investments 3. Financial Markets and Institutions 4. International Finance Corporate Finance - correct answer the business function of obtaining funds for a company and managing them to accomplish the company's objectives only relevant to corporations investments - correct answer area deals with financial assets such as stocks and bonds. Some of the more important questions include: What determines the price of a financial asset, such as a share of stock? What are the potential risks and rewards associated with investing in financial assets? What is the best mixture of the different types of financial assets to hold? Financial institutions - correct answer are basically businesses that deal primarily in financial matters. Banks and insurance companies would probably be the most familiar to you. Banks--commercial and investment, credit unions, savings and loans; Insurance Companies, Brokerage firms. International finance - correct answer involve international aspects of either corporate finance, investments, or financial institutions. For example, some portfolio managers and security analysts specialize in non-U.S. companies. Similarly, many U.S. businesses have extensive overseas operations and need employees familiar with such international topics as exchange rates and political risk. Banks frequently are asked to make loans across country lines, so international specialists are needed there as well. primary market - correct answer It is a new issue. Investors buy directly from the issuing company. secondary market - correct answer It is already existing shares. Investors trade securities among themselves, eg. E-trade, Robinhood etc. Why Study Finance? - c