FINA 2700 Chapter 2: Financial Markets and Institutions
28 Nov 2016
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Document Summary
The importance of financial markets and institutions business. A modern financial system offers financing in many different forms, depending on the company"s age, its growth rate, and the nature of its. Financial market market in which securities are issued and traded. Primary market market for the sale of new securities by corporations. Secondary market market in which already issued securities are traded. The flow of savings to public corporations require separation of ownership among investors and control: the ultimate owners of a corporation are not its managers. Financial markets and institutions are supposed to move financing to all firms that can invest at superior rates of return. Bonds and other debt securities can vary in maturity, the degree of investors and investing in a portfolio of securities and provides financing for individuals, corporations, or other organizations. Fixed-income market market for debt securities. Capital market market for long-term financing. Money market market for short-term financing (less than a year)
