2. Unit 14. Banking
BUSINESS ADMINISTRATION
201100210 Kwon Jeong Eun
3. Banking
• In general terms, the business activity
of accepting and safeguarding money
owned by other individuals and
entities, and then lending out this
money in order to earn a profit.
4. Vocabulary
• Liquidity
available cash, and how easily other assets can be turned into cash
• Stockbroking
buying and selling stocks or shares for clients
• Solvency
ability to pay liabilities when they become due
• Conglomerate
a group of joined companies, operating in different fields
• Collateral
anything that acts as a security or a guarantee for a loan
5. UNIT 15. STOCKS and SHARES
BUSINESS ADMINISTRATION
201103007
Jeeye Jang
6. How the Stock Market Works
• One day, customer demand more
products.
• Form his own corporation to sell
shares in his business and raise the
capital he needs.
7. How the Stock Market Works
• Go to State Government, to get a
corporation charter and a permit.
8. How the Stock Market Works
• Go to Investment Banker, and show the
record of past performance and plans.
• And Investment Banker
decides to help.
9. How the Stock Market Works
• Before any shares in the corporation can be sold,
certain information is filed with the securities &
exchange commission.
• The Investment Banker and the owner must
swear that the
information they
filed contains
nothing but the truth
10. How the Stock Market Works
• After registration, Investment Banker pays
the owner exchange for a certain number
of shares of corporation.
11. How the Stock Market Works
• Then Investment Banker sells shares of the
common stock to people.
• Meanwhile, money received from the sale of
shares yield a
new and better plan
which produces
more and better
products.
12. How the Stock Market Works
• Stockholders elect the directors of corporation.
Boards of directors are responsible for the way
business’s run.
• Directors determine the amount of dividends
to the stockholders.
13. How the Stock Market Works
• One way to get additional capital is to sell
more stocks to many more people.
14. Limited company
• Legal entity that is separate from it’s owners, and is only
liable for the amount of capital that has been invested in
it.
• Co.,Ltd
• cf. UNLIMITED COMPANY ??
- Partners are liable for the company without a limit.
15. Private limited company
Memorandum of Association/Certificate of
Incorporation
- company’s name, purpose, registered office, authorized share
capital
Articles of Association/Bylaws
- set out the duties of directors and the rights of
shareholders/stockholders
16. Public limited company
Successful companies can apply to a stock
exchange to become a public limited company/listed
Company
Have to send their shareholders
an independently audited
report every year, containing
the year’s trading results
and a statement of their financial
position.
17. Rights issue Bonus issue
• Companies can • Issue new shares
issue new shares to shareholders
when they want to instead of paying
raise more money dividends when
for expansion. they chose to
They are offered to
capitalize part of
existing
shareholders at first their profit.
at less than market
price.
18. Value of shares
• Share owners can vote at a company’s Annual
General Meeting/Annual Meeting of Stockholders.
• Share owners receive a proportion of distributed
profits on the form of dividend or company’s
residual value if it goes into liquidation
19. Unit 15. Bonds
BUSINESS ADMINISTRATION
200602803 Jang Kyooho
20. BONDS
A debt instrument issued by governments ,
corporations and other entities in order to finance
projects or activities
In essence, a bond is a loan that investors make to the
bond’s issuer
They help governments and
Corporations fund expansion,
Research and development,
And other important projects.
21. Bond Investing
Bond investing is the purchase of the bonds or debt of a company
or government.
Treasury bonds – issued by Government
Corporate bond - Companies issue corporate bonds to borrow
money from investors instead of securing a loan from a bank.
22. Vocabulary
Equity financing : issuing shares
Debt financing : issuing bonds
Bearer certificate : a security whose owner is no registered with the
issuer
Liquid : easily sold(turned into cash)
Par : nominal or face value(100%)
Coupon : the rate of interest paid by a fixed interest security
Yield : the rate of income an investor receives taking into account a
security’s current price.
24. • An arrangement by which a customer
can withdraw more from a bank
account than has been deposited in it,
up to an agreed limit – 50 points
A. Overdraft (O)
B. Debit card
25. • A plastic card issued to bank
customers for use in cash dispensers
- 50 points
A. Cash card (O)
B. Credit card
26. • A company considered to be without
risk – 50 points
A. Conglomerate (O)
B. Blue chip
27. • Anything that acts as a security or a
guarantee for a loan – 50 points
A. Liquidity
B. Collateral (O)
28. Right issue
• They are newly issued and offered to
existing share holders.
• 100 points
29. Memorandum of
Association/Certificate of Incorporation
• It is written for borrowing money. It
involves company’s name, purpose, the
amount of authorized share capital.
• 200 points
31. Value of shares (50 points each)
• Share owners can vote at a company’s Annual
General Meeting/Annual Meeting of Stockholders.
• Share owners receive a proportion of distributed
profits on the form of dividend or company’s
r.esidual value if it goes into liquidation
32. Bearer certificate
• a security whose owner is no
registered with the issuer
• 100 points
33. Yield
• the rate of income an investor
receives taking into account a
security’s current price.
• 100 points
