MGTA02H3 Chapter 9: Chapter 9 Securities Market.docx

• School: UTSC
• Department: Management (MGT)
• Course: MGTA02H3
• Professor: Chris Bovaird

Document Summary

Securities: stocks and bonds which represents a secured asset based claim on the part of investor that can be brought and sold. Stock holders have claims on some of the cooperation holders assets. Bonds represents strictly financial claims for money owned to holders by a company. Primary security market: the sale and purchase of newly issued stocks and bonds by firms or government. Private placement: allow the businesses that use them to keep their plans confidential. Investment banking: investment bankers: any financial institution engaged in purchasing and reselling new stocks and bounds, 3 types of invested banking services. They advise the company on the timing and financial terms for the new issues. By buying the new securities investment bankers bear some of the risk of issuing the new security. They create the distribution network that moves the new securities through group of other banks and brokers into the hand of individual investors.