COMM 200 Lecture Notes - Lecture 5: Sole Proprietorship, Legal Personality, Capital Structure

• School: Queen's University
• Department: Commerce
• Course: COMM 200
• Professor: Mc Caugherty Darren J

Document Summary

Bond issuance process: company recognizes a need to generate/raise capital, company assesses capital options and determines the floating of a bond is the preferred approach to raising capital, company engages an investment brokerage fir, to facilitate the bond flotation, bonds are released to the market for purchase pension funds, investment firms, bonds are traded on the exchange with valuation based on internal and external (prospectus) and individual traders factors. Public equity (stock) issuance process: company recognizes a need to generate capital, company assesses capital options an determines that the issuance of stock is the preferred approach to raising capital, company engages an investment firm to facilitate the ipo or apo (prospectus, shares are released to the market for purchase, shares are traded on an exchange with valuation based on internal and external factors. Operations: no extent funding source is required, no dilution of ownership occurs, no fixed repayment schedule, no interest payments.