ch3_outline - Investment Analysis Chapter 3 I. How Firms...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Investment Analysis Chapter 3 I. How Firms Issue Securities a. Investment Banking i. Typically, investment bankers purchase the securities from the issuing company and then resell them to the public ii. Issuing firm sells the securities to the underwriter for the public offering price less a spread that serves as compensation to the underwriters b. Shelf Registration i. Allows firms to register securities and gradually sell them to the public for two years following the initial registration ii. Can be sold on short notice with little additional paperwork; sold in small amounts without incurring substantial flotation costs c. Private placements i. Investment banker sells shares directly to a small group of institutions or wealthy investors d. Initial Public Offerings i. Investment bankers organize road shows where they travel around the country to publicize the offering ii. Marketed to investors at attractive prices II. How Securities are Traded a. Types of Markets i. Direct search markets
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/10/2010 for the course FIN 3504 taught by Professor Staff during the Fall '08 term at University of Central Florida.

Page1 / 3

ch3_outline - Investment Analysis Chapter 3 I. How Firms...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online