BUSI 530 Chapter Notes - Chapter 2: Financial Intermediary, Investment, Capital Structure
Document Summary
Financial market: markets in which securities are issued and traded, where debt securities and equities are traded. Financial institution: a bank (commercial and investment), insurance company, or similar financial intermediary, an intermediary that does more than just pool and invest savings. Cash retained and reinvested in the firm"s operations is cash saved and invested on behalf of the firm"s shareholders . Micro loans: high interest rates, cost of writing and administering small loans is high, loans are made in nations with weak currencies. Public corporations: can draw savings from investors worldwide. Savings flow through financial markets (stock market), financial intermediaries (bank of. Financial intermediary: organization that raises money from many investors and provides financing to individuals, corporations, or other organizations. Primary market: market for the sale of newly issued securities. Primary issue: when a new issue of shares increases both the amount of cash held by the company and the number of shares held by the public.
