DOC PREVIEW
UB MGF 401 - chap002

This preview shows page 1-2-3-4 out of 11 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 11 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 11 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 11 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 11 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 11 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Chapter 2 - Financial MarketsPrimary Market Debt IssuanceUnderwritten Stock Sale (Primary Market)Financial IntermediariesFinancial MarketsSlide 6Total U.S. FinancingSlide 8Function of Financial MarketsU.S. FinancingOpportunity Cost of CapitalCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 1Chapter 2 - Financial MarketsFinancing DecisionWhat is the Source of Funds or “Capital”Long Term? (Issue stock or bonds)Short Term? (Money Markets)Primary v. Secondary MarketPrimary Market (Company sells to investor)Secondary Market (Company not involved)Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 2Irwin/McGraw-HillPrimary Market Debt IssuanceCompanyIssue DebtCashInvestorsCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 3Irwin/McGraw-HillUnderwritten Stock Sale (Primary Market)CompanyCompanyInvestment BankInvestment BankInvestors Investors $ $Sells sharesIssues sharesCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 4Irwin/McGraw-HillFinancial IntermediariesFundsFundsBanksInsurance Cos.Brokerage FirmsObligationsDepositorsPolicyholdersInvestorsObligationsCompanyIntermediaryInvestorCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 5Irwin/McGraw-HillFinancial MarketsBanksDepositors$2.5 milCashLoanDepositsCompanyIntermediaryInvestorCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 6Irwin/McGraw-HillFinancial MarketsInsurance CompanyPolicyholders$250 milCashLoanSell policies Issue StockCompanyIntermediaryInvestorCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 7Total U.S. Financing% Holdings of Corporate and Foreign Bonds (Qtr 1, 2005)Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 8Total U.S. Financing% Holdings of Corporate Equities (Qtr 1, 2005)Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 9Function of Financial MarketsTransporting cash across timeRisk transfer and diversificationLiquidityPayment mechanismProvide informationCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 10U.S. FinancingInformation Provided by Financial MarketsCommodity pricesInterest ratesCompany valuesCopyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin2- 11Opportunity Cost of


View Full Document

UB MGF 401 - chap002

Download chap002
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view chap002 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view chap002 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?