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Three key steps of financial planning forecasting the

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Three key steps of financial planning: - Forecasting the firm’s short-term and long-term financial needs. - Developing budgets to meet those needs. - Establishing financial controls to see if the company is achieving its goals. 顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶 , 顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶 : 顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶顶 , 顶顶顶顶顶顶顶顶顶顶顶 Debt Financing -- The funds raised through various forms of borrowing that must be repaid. Equity Financing -- The funds raised from within the firm from operations or through the sale of ownership in the firm (such as stock). Indenture Terms -- The terms of agreement in a bond issue. Secured Bond -- A bond issued with some form of collateral (i.e. real estate). Unsecured (Debenture) Bond -- A bond backed only by the reputation of the issuing company. Using Securities Markets for Financing & Investing Opportunities Securities markets are financial marketplaces for stocks and bonds and serve two primary functions: 1. Assist businesses in finding long-term funding to finance capital needs. 2. Provide private investors a place to buy and sell securities such as stocks and bonds. Securities markets are divided into primary and secondary markets: 1. Primary markets handle the sale of new securities. 2. Secondary markets handle the trading of securities between investors with the proceeds of the sale going to the seller. Stock Exchange -- An organization whose members can buy and sell securities on behalf of companies and individual investors. Over-the-Counter (OTC) Market -- Provides companies and investors with a means to trade stocks not listed on the national securities exchanges. NASDAQ -- A telecommunications network that links dealers across the nation so they can exchange securities. Securities and Exchange Commission (SEC) -- The federal agency responsible for regulating the various stock exchanges; created in 1934 through the Securities and Exchange Act. Prospectus -- A detailed registration statement that includes extensive economic and financial information that must be sent to prospective investors. 1. What’s the primary purpose of a stock exchange? The primary purpose of a stock exchange is to allow members of the exchange to buy or sell securities on behalf of investors.
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1. Can you name the world’s largest stock exchange? NYSE Euronext is the largest stock exchange with exchanges in six different countries.
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