Question
Financial Markets and Institutions Businesses have two main segments of the financial environment from which to seek investment and financing opportunities: ________________________________________ ________________________________________ The Flow
Financial Markets and Institutions
Businesses have two main segments of the financial environment from which to seek investment and financing opportunities:
________________________________________
________________________________________
The Flow of Savings to Corporations
In a closely held corporation:
Corporation
Cash reinvested in ___________________________________
Investors
Cash raised from _____________________________
In a large public corporation:
Financial Market
Market where securities are ________________ and/or _____________________
Primary Market
Market for the sale of ______________________________ by corporations
Initial Public Offering (___________)
Secondary Market
Market in which _____________________________________securities are traded among investors
Equity vs. Debt
_____________________________
Market for stocks
_____________________________
Market for bonds
Long Term vs. Short Term
______________________________
Market for long-term financing
______________________________
Market for short-term financing (less than 1 year)
The Flow of Savings to Corporations
Financial Intermediary
An organization that _______________________________________________ and _____________________________________ for individuals, companies, and other organizations
Financial Institution
A __________________, insurance company, or similar financial intermediary
Mutual Fund
An investment company that _______________ the savings of _______________ investors and invests in a ______________________ of securities
Hedge Fund
A private investment pool, open to wealthy or institutional investors, that is only __________________________________ and therefore can pursue more speculative policies than mutual funds
Pension Fund
Fund set up by an _______________________ to provide for employees retirement
A Mutual Fund
Commercial Bank
Function of Financial Markets
Transporting cash across ________________
________________________
Payment mechanism
Provide _________________________
Information Provided by Financial Markets
_____________________________
_____________________________
______________________________
_____________________________
The Crisis of 2007-2009
_______________________________
______________________________________
______________________
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