Chapter 19 - Chapter 19 FINANCING DECISIONS Oxford Chapter...

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Chapter 11: Strategic Leadership Chapter 19 © Oxford University Press Southern Africa, 2008. All rights reserved. FINANCING DECISIONS
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Chapter 11: Strategic Leadership CHAPTER CONTENT Introduction Financial markets Short-term financing Trade credit Accruals Debtor finance Long-term financing Shareholders interest Long-term debt The optimal capital structure © Oxford University Press Southern Africa, 2008. All rights reserved.
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Chapter 11: Strategic Leadership FINANCIAL MARKETS Financial markets and financial institutions play an important role in the financing of businesses. Financial markets are the channels through which holders of surplus funds make the funds available to those who require additional finance. Financial institutions act as intermediaries on financial markets between the savers and those with a shortage of funds. Financial intermediation is the process in which financial institutions pool funds from savers and make these funds available to those requiring finance.
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Chapter 11: Strategic Leadership MONEY AND CAPITAL MARKETS The money market is the market for financial instruments with a short-term maturity. Funds are borrowed and lent for periods of one day or for a few months. Funds required for long-term investment are raised and traded by investors on the capital market. Mostly takes place on the Johannesburg securities exchange. Long-term investment transactions of this nature can also be done privately.
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Chapter 11: Strategic Leadership TYPES OF INSTITUTIONS Deposit-taking institutions The South African Reserve Bank (SARB) The Land and Agricultural Bank (Land Bank) The Corporation for Public Deposits (CPD) Private sector banks The Post Bank
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This note was uploaded on 03/22/2011 for the course MNB 101D taught by Professor Unknown during the Spring '09 term at University of South Africa.

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Chapter 19 - Chapter 19 FINANCING DECISIONS Oxford Chapter...

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