MGTA02H3 Chapter Notes - Chapter 11: Corporate Bond, Tokyo Stock Exchange, Chicago Stock Exchange
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MGTA02H3 Full Course Notes
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Securities: stocks and bonds (which represent a secured-asset-based claim on the part of the investors) that can be bought and sold. Stockholders have claims on some of a corporation"s assets & a say in how the company is run because each share represents part ownership. Bonds represent strictly financial claims for money owed to holders by a company. Companies sell bonds to raise long term funds. The market in which stocks and bonds are sold are called securities market. Primary securities markets: the sale and purchase of newly issued stocks and bonds by firms or government. Private placements allows the businesses that use them to keep their plans confidential. Investment banker: any financial institution engaged in purchasing and reselling new stocks and bonds. Investment bankers serve as financial specialists in issuing new securities. New securities represent only a small portion of securities traded. Secondary securities market: the sales and purchases of previously issued stocks and bonds.
