BUSN 101 Chapter Notes - Chapter 19: Initial Public Offering, High-Yield Debt, Dow Jones Industrial Average
14 Apr 2016
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Chapter 19 securiies markets for financing and invesing opportuniies. Securiies markets inancial marketplaces for stocks, bonds, and other investments: assist businesses in inding long-term funding to inance capital needs, provide private investors a place to buy and sell securiies (investments) Primary market: sale of new securiies, corporaions only make money once from selling stock when they sell it on the primary market. Iniial public ofering (ipo) irst public ofering of a corporaion"s stock. Secondary market: trading of securiies between investors, proceeds go to the investor who sells the stock (instead of the business) Businesses normally prefer to meet long-term inancial needs by using retained earnings or borrowing funds (bank, pension, insurance company) Investment bankers specialists who assist in the issue and sale of new securiies. They prepare the inancial analyses to gain approval to issue stocks and bonds. Insituional investors large organizaions (pension funds, insurance companies) that invest in their own funds.
