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How Finance Works
book

How Finance Works

by Mihir Desai
April 2019
Beginner
288 pages
7h 13m
English
Harvard Business Review Press
Content preview from How Finance Works

 

3 The Financial Ecosystem

Understanding the who, why, and how of capital markets

In the summer of 2018, Netflix, the online video streaming service, announced that it had added 670,000 new domestic subscribers to its service and 4.5 million international subscribers (in addition to the 125 million subscribers it already had). The stock fell by 14 percent in after-hours trading. Why? How could a large increase in the total subscriber numbers translate to a 14 percent stock price drop?

In 2014, activist investor Nelson Peltz took a large stake in PepsiCo and began demanding that it split its snack foods division (Frito-Lay) from its soft-drink division. PepsiCo responded by saying, “We trust that you appreciate the seriousness with which ...

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Publisher Resources

ISBN: 9781633696716