1. Warm Up What type of businesses are exempt from taxes?
Provide one example of a government operated business.
Do you have a bank account? Which bank?
1.Non-Profit
2. Postal Service or Public Transportation

2. Business Finance Economics Standard 12.12.9
Learning Goal: I will understand how corporations finance their businesses.

3. I. Short-Term Financing
Less than 1 year
Bank loans (loan + interest)

4. II. Long-Term Financing
More than 1 year
Requires collateral
Common Stock (owners can vote; sometimes dividend)
Preferred Stock (no vote; get fixed dividends)
Bonds (investors loan a company or gov’t $)

5. Common vs. Preferred Stock

6. James Bond

7. Bonds vs. Stocks

8. III. Stock Exchanges New York Stock Exchange American Stock Exchange
NASDAQ (National Association of Securities Dealers Automated Quotation)
Bull market is going up
Bear market is going down

9. Outside NYSE

10. Bear vs. Bull Market

11. Bull Market

12. IV. Brokerage Firms Place order locally or online
Send info to floor representative in NY
Margin (buying with borrowed money)
Earn dividends

13. Brokerage Firms

14. V. Securities and Exchange Commission (est. 1934)
Police of the stock market
False info = fine & jail
Stop criminal manipulation of stock prices & insider trading

15. SEC

16. VI. Balance Sheet Assets = anything of value
Liabilities = debts/obligations
Net worth = assets – liabilities