FIN 3104 Chapter Notes - Chapter 2: Primary Market, Theory-Theory, Financial Intermediary
23 Sep 2016
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Chapter 2 the financial markets and interest rates. Capital markets all institutions and procedures that facilitate transactions in long-term financial instructions. Financing business: the movement of funds through economy. Three ways to transfer capital in the economy: direct transfer of funds. Angel investor a wealthy private investor who provides capital for a business start-up. Venture capitalist an investment firm that provides money to business start ups: indirect transfer using the investment banker. Investment banking firm is a financial institution that helps companies raise capital, trades securities, and provides advice on transactions such as mergers and acquisitions: indirect transfer using the financial intermediary. Type of system in which life insurance companies, mutual funds, and pension funds operate. When a company decides to raise external capital, those funds can obtained by a public offering or private placements o. Secondary market trading of securities between individuals. Money market all institutions and procedures that facilitate transactions.
