9.27.10 - 9.27.10 Using Securities Markets for Financing...

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9.27.10 Using Securities Markets for Financing and Investing Opportunities - Types of Businesses SCorp – Sole Corporation LLC – limited liability corporation LLP – limited liability partnership Fully incorporated corporations a few the only types of businesses that can issue stocks and bonds - Warren Buffet Investment strategy – buy undervalued companies and hold them for the long term Buy something you know people will need and wait Could take 10years or more, but need to be patient Considered the most successful investor - Peter Lynch => Magellan fund Held investments for 10years - The Function of Securities Markets Raises money for the company Initial public offering (IPO) – first public offering of a corporation’s stock Changes the structure and attitude of running a corporation The Role of Investment Bankers Investment bankers – specialists who assist in the issue and sale of new securities Institutional investors – large organizations that invest their own funds of the funds of others Red Herring – all financial information about the company Includes information about what company is worth and all the important information about how the company is run (including board members and managers) Underwriters =>help to get stock sold - Stock Exchanges An organization whose members can buy and sell securities for companies and individual investors New York Stock Exchange => largest in the world Market Maker – their job is to own any outstanding shares that are not bought or owned (out of own bank account)
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This note was uploaded on 11/21/2010 for the course BUSINESS 101 taught by Professor Monastersky during the Fall '10 term at Bergen Community College.

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9.27.10 - 9.27.10 Using Securities Markets for Financing...

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