BADM*3000 Lecture Notes - Lecture 2: Capital Market, Private Equity, Investment
Document Summary
Primary markets: markets for the sale of new securities by corporations, a new issue of shares is sold in the primary market, corporations raise funds in the primary markets. Secondary markets: markets in which already issued securities are traded among investors, a change in ownership takes place, no new funds raised by the firm in the secondary market, stock exchanges are secondary markets o. Involve trading of the existing securities: money markets vs capital markets, capital markets. Markets where long term debt (bonds) and equity securities (shares of stock) are traded among investors. The toronto stock exchange is a capital market: money markets commercial paper one year, derivative markets. Markets for short-term financing (less than a year) Commercial paper--debt securities with maturities of at most. A market where derivative securities, such as futures and o options are traded among investors. Intermediaries are important sources of financing for corporations. Mutual fund is an open-end fund, issues units to new.
