Financial Markets (Economics)

Recall cards on how firms raise financial capital, how households supply it, and how to accumulate personal wealth. Raising capital: angel investors, venture capital, reinvested profits, bank borrowing, bonds, and stock, plus IPOs, dividends, capital gains, private versus public companies, and the tradeoffs of borrowing versus issuing stock. Supplying capital: banks as intermediaries, bond face value, coupon rate, maturity, and yield, default and interest rate risk, mutual and index funds, diversification, and the risk-return tradeoff. Building wealth: the random walk of stock prices, the difficulty of beating the market, compound interest, and the payoff of education and early saving.