The Financial Landscape
The Financial Landscape
Chapter 4 is an intermediate staging-point to conceptually understand: A) the landscape of debt, equity, and derivative instruments; B) financial markets, transactions, and participants; and C) the segmentation and data. These concepts will each be expanded upon in later chapters, but their rough relationships must be understood first.
4-6: Financial Instruments, Markets, Transactions, & Participants
Discussion of A) the landscape of debt, equity, and derivative instruments; B) financial markets, transactions, and participants; and C) the segmentation of sectors and industries and sources of financial data.
Equity Markets & Securities
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in."
- John D. Rockefeller
Discussion of private equity financing, initial public offerings, and public equity financing.
Attributes of common stock, retained earnings, preferred stock, and noncontrolling interest. Progression of financial statement extraction of financial activities and equity accounts.
Dividends are the payout of a company's earnings to its shareholders. The attributes, caveats, consistency, and many other factors make dividend policy strongly influential of stock price and volatility. Calculations of effective return on an equity investment, to account for dividends, taxation, and the time value of money.