1. 16-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 16 Managing Finances

2. 16-2 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives After reading this chapter, you should be able to: Explain the concept of the time value of money and the principle of compound growth. Identify the investment opportunities offered by mutual funds and exchange-traded funds. Describe the role of securities markets and identify the major stock exchanges and stock markets.

3. 16-3 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives After reading this chapter, you should be able to: Describe the risk-return relationship and discuss the use of diversification and asset allocation for investments. Describe the various ways that firms raise capital and identify the pros and cons of each method. Identify the reasons a company might make an initial public offering of its stock and explain how stock value is determined. Explain how securities markets are regulated.

4. 16-4 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Maximizing Capital Growth

5. 16-5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Time Value of Money

6. 16-6 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Rule of …

7. 16-7 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Common Stock

8. 16-8 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Mutual Funds and Exchange-Traded Funds

9. 16-9 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Securities and Exchange Commission

10. 16-10 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Business of Trading Securities

11. 16-11 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Stock Exchanges

12. 16-12 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Non-Exchange Trading: Electronic Communication Networks

13. 16-13 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Individual Investor Trading

14. 16-14 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Tracking the Market Using Stock Indexes

15. 16-15 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The Risk-Return Relationship

16. 16-16 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Fantasy Stock Markets

17. 16-17 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Reducing Risk with Diversification and Asset Allocation

18. 16-18 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Financing the Business Firm

19. 16-19 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Secured Loans for Equipment

20. 16-20 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Working Capital and Unsecured Loans from Banks

21. 16-21 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Angel Investors and Venture Capital

22. 16-22 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Sale of Corporate Bonds

23. 16-23 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Becoming a Public Corporation

24. 16-24 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Going Public Means Selling Off Part of the Company

25. 16-25 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Stock Valuation

26. 16-26 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Market Capitalization

27. 16-27 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Choosing Equity Versus Debt Capital

28. 16-28 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Debt Financing

29. 16-29 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Pros and Cons for Equity Financing

30. 16-30 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Regulations Against Insider Trading

31. 16-31 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Summary of Learning Objectives

32. 16-32 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall