Key Stock Market Terms and Definitions
Bid: The price a buyer is willing to offer for shares in a company.
Blue Chip Stocks: Stocks of leading companies with a reputation for stable growth and earnings. *Generally considered among the best stocks.*
Bond: Certificate issued by companies and governments to their lenders.
Capital: Money and other property of companies used in transacting the business.
Capital Stock: All shares representing ownership of a company.
Commodities: Products such as agricultural products and natural resources (wood,
Read MoreFactoring and Bonds: Funding Strategies for Business Growth
Financing Through Factoring
Factoring involves a specialized company, a factoring company, responsible for collecting receivables from other companies. A company with drafts or bills receivable and immediate cash needs can sell them before maturity to a factoring company, which will charge a fee.
Factoring offers similar advantages to discounting bills, with the added benefit that once the rights are sold, the company is free from the risk of defaults.
The biggest drawback is its high cost, as the
Read MoreUnderstanding Securities Markets and Corporate Finance
Securities Markets and Corporate Finance Operations
Financial assets are a means of maintaining wealth for the owner and a source of funding for those who issue them.
Classification:
- Fixed income financial assets: These contribute to long-term flows, such as bonds or obligations.
- Equity financial assets: These are uncertain, IQ-dependent flows that generate profits distributed by the company as dividends per share.
The Markets
Financial assets are traded in markets. The market is formed by all the markets
Read MoreRaising Capital: Venture Capital, Public Issues, and Rights Offerings
Raising Capital
Venture Capital
Venture Capital is private financing for relatively new businesses in exchange for stock. The ultimate goal is usually to take the company public, and the venture capitalist will benefit from the capital raised in the initial public offering (IPO).
Public Issue
A public issue is the creation and sale of securities that are intended to be traded on the public markets.
Steps in Issuing New Securities to the Public
- Management must obtain permission from the Board of Directors.
Understanding the Stock Market and Financial Assets
Stock Market
The Stock Market is one where monetary resources are exchanged for financial assets.
Finance Companies (Private Finance) (Variable Debt)
And Company Limited Partnership.
The capital of companies is divided into shares, and each represents a title.
The company may eventually expand the capital that involves a new breed of actions, divided into the old shareholders who have preferential subscription rights to purchase new shares.
You can also issue bonds. Who gets a duty has the right to collect
Read MoreFinancial Markets: Understanding Securities, Institutions, and Risk
A market is a place where buyers and sellers meet to exchange something of value. This exchange is mutually beneficial and involves non-coerced transactions.
What are Financial Markets?
A financial market is a market in which financial assets (securities), such as stocks and bonds, can be purchased or sold. Financial markets transfer funds from those who have excess funds to those who need funds.
- Surplus units: Participants who receive more money than they spend, such as investors.
- Deficit units: Participants