Module 1: Introduction to Investments

(BUSFIN 4221 – Investments)_

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Instructor:	Andrei S. Gonçalves
E-mail:	Andrei_Goncalves@kenan-flagler.unc.edu
Website:	andreigoncalves.com/BUSFIN4221

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Welcome to Module 1!

Download the class slides here and the “to print” version here.

When someone decides to invest, he/she is really just transferring capital to another person/firm in exchange for a “promise” of cash flow. As such, we can broadly understand the investment world as the “Demand and Supply of Capital” in the economy. In Module 1, we will learn how and why capital is transferred from one hand to another.

Since the investment world is all about the “Capital Demand and Supply”, it is good to keep the two broad (and simplified) diagrams in mind:

Capital Demand

Capital Supply