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Unformatted text preview: screwups) Owned by shareholders elect board appoint senior management. Adv Liability of owners limited to invested funds Life of corp not tied to owner Easier to transfer ownership and raise cap Dis Regulation Double tax on dividends Hybrids LLC S-Corp 3 principal sets of players that interact with financial markers: Borrowers Savers (lenders) Financial institutions (intermediaries) Money versus capital market Money market- debt instruments with maturity of 1yr or less Capital market- long term debt and equity instruments Commercial banks Collect savings and lend the pooled savings out Charge interest exceeds rat they pay to savers In US banks cannot own industrial corps Non-Bank Financial Intermeds Financial service corps Insurance Invest banks Special Help cos and govs raise money Provide advisory services to client firms on major transactions such as mergers Invest companies ie mutual and hedge funds Pool savings of savers and invest in securities...
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- Fall '08
- Corporate Finance