Unformatted text preview: Primary Market Market in which new issues of a security are sold to initial buyers. Secondary Market Market in which previously issued securities are traded. Initial Public Offering (IPO) The first time the firm’s stock is sold to the general public. Seasoned New Issue A new stock offering by a firm that already has stock that is traded in the secondary market. Financial Management Axioms 1) Risk - return trade-off. 2) Time value of money. 3) Cash - not profits - is king. 4) Incremental cash flows count. 5) The curse of competitive markets. 6) Efficient capital markets. 7) The agency problem. 8) Taxes bias business decisions. 9) All risk is not equal. 10) Ethical dilemmas are everywhere in finance....
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- Spring '11
- Corporation, shareholder wealth maximization, Limited Liability Company, time value