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Unformatted text preview: Secondary All subsequent trading Issuing firm des not receive any new financing since exchange between 2 ppl Process of raising money in securities market Sell invest Distribute, cont to trade in sec Types of securities Debt secs: firm borrow money by selling debt in debt market Less than one year not traded in mm More bond in capmark Bonds Fixed interest on face or par value Coupon rate- interest payment Equity- ownership of corp Common stock Earn return after all other security holder claims are satisfied in full (residual owners) Dividend not fixed or guaranteed. Co can reinvest in new project and not pay divs Preffered stock Debt and equity hybrid Diveidesns before common stockholders Paid before stock holdrs in bankrupcy Stock Market Pub market in which stocks of cos traded Organized sec exchange or OTC (over the counter) Organized Physical ie NYSe OTCs Everyone other than org ie NASDAQ "screen-based, floorless market"...
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- Fall '08
- Corporate Finance, Stock exchange, private equity firms, Exchange Traded Fund