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Unformatted text preview: Chapter 19:Managing Financial Resources The Function of Securities Markets Initial public offering (IPO)- the first public offering of a corporations stock Secondary market- handles the trading of securities between investors, with the proceeds of a sale going to the investor selling the stock is sold The Role of Investment Bankers Investment bankers- spets who assist in the issue and sale of new securities Institutional investors- large organizationssuch as pension funds , mutual funds, insurance companies, and banksthat invest their own funds or the funds of others Debt Financing by Selling Bonds Bond- a corporate certificate indicating that a person has lent money to a firm Learning the Language of Bonds Interest- the payment the issuer of the bond makes to the bondholders for use ooof thhhe borrowed money Demonination- the amount of debt represented by one bond Principal- face value of a bond Maturity date- the exact date the issuer of a bond must pay the principal to the...
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This note was uploaded on 03/20/2008 for the course BINT 101 taught by Professor Lifton during the Fall '07 term at Ithaca College.
- Fall '07