Primary Capital Markets

Primary Capital Markets - 4-1Primary Capital...

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Unformatted text preview: 4-1Primary Capital MarketsGovernment Bond IssuesTreasury Bills: Negotiable, non-interest bearing securities with original maturities of one year or lessTreasury Notes: Original maturities of 2 to 10 yearsTreasury Bonds: Original maturities of more than 10 yearsThe sales of these bills, notes, and bonds are conducted through the Federal Reserve 4-2Primary Capital MarketsMunicipal Bond IssuesSold by three methodsCompetitive bidNegotiationPrivate placementUnderwriters sell the bonds to investorsOriginationRisk-bearing4-3Primary Capital MarketsCorporate Bond and Stock IssuesCorporate bond issues are almost always sold through a negotiated arrangement with an investment banking firm that maintains a relationship with the issuing firm.New Stock IssuesSeasoned new issues: New shares offered by firms that already have stock outstandingInitial public offerings (IPOs): A firm selling its common stock to the public for the first timeThese new issues are typically underwritten by 4-4...
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Primary Capital Markets - 4-1Primary Capital...

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