MGMT 1 Lecture Notes - Lecture 1: Initial Public Offering, Merage Family, Secondary Market
Document Summary
Chapter 19: using securities markets for financing and investing. Securities are divided into primary and secondary markets: primary markets handle the sale of new securities, corporations make the sale of their securities (stock) on only once when they sell it on the primary market. Initial public offering (ipo) the first public offering of a corporation stock: secondary market handles the trading of these securities between investors, with the proceeds of the sale going to the investor selling their stock. If long-term funds are not available from retained earnings or lenders, a company may be able to raise capital by issuing corporate stock. To get approval for stock or bond issues you must make extensive financial disclosures and undergo detailed scrutiny by the u. s. sec. Investment bankers specialists who assist in the issue and sale of new securities: can help companies prepare the extensive financial analyses necessary to gain.
