B financial intermediation its like when one party

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b. financial intermediation It’s like when one party wants to financing, they go to the financial intermediation, and the intermediation find the lender that willing to borrow the money to the first party, so it is like a middle man. Man in the middle. c. capital markets
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It is a market for the securities. And it is a long-term loans more than period of 1 year. d. secondary markets Secondary market is when you can trade the securities between owners, and it is not belong to the original company owner. For example the stock market. e. adverse selection The choice that go against your primary goals, like you do a project and bid against for the chance that it will fail. f. Gresham’s Law Because the bad money have lower cost, people tend to trade the bad money with lower cost on the market, and tend to save the good money, so the good money will not run on the market, that’s why bad money runs out good money. 4. SERIES B BOND SALE Series B bonds will be similar to Series A bonds. They pay $12 on January 13. There will be 100 bonds sold, and a Dutch auction will be used to determine the bond price. The bids will be ranked in order, and the price of the 100th bond will become the market- clearing price. Please submit your bid price and quantity you would like to purchase as part of the assignment. 10 dollars per share for 5 bonds. 10*5= 50
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