corp - Jesse Pettyjohn Corporate Finance Take Home Test A...

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Jesse Pettyjohn 9/26/10 Corporate Finance “Take Home Test” A. Three primary ways in which capital is transferred between savers and borrowers are Direct Transfers, Indirect Transfers through Investment Bankers and indirect transfers through a financial intermediary. A Direct Transfer is when a business transfers securities to savers and in return the savers send money back to the business. An indirect transfer through investment bankers is when a business sends its securities through an investment bank that then sends the business securities to a saver. Next, the saver sends money back to the Investment Bank, which then transfers it back to the business, making the Investment Bank a type of middleman between the business and the saver. Lastly, an indirect transfer through a Financial Intermediary is when the business securities are sent to the Financial Intermediary. The Intermediary Securities are then sent to the saver. In return, the saver sends money back to the Financial Intermediary, who then sends the money back to the business. B. A market is any one of a variety of different systems , institutions , procedures , social relations and infrastructures whereby persons trade , and goods and services are exchanged, forming part of the economy . - A physical asset market versus financial asset markets: Physical asset markets are for products such as wheat, autos, real estate, computers and machinery. Financial asset markets deal with stocks, bonds notes and mortgages. - A spot market versus a future market: Spot markets are markets in which assets are bought or
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This note was uploaded on 10/06/2010 for the course CORPORATE 163 taught by Professor Coosh during the Spring '10 term at Ocean County College.

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corp - Jesse Pettyjohn Corporate Finance Take Home Test A...

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