tailieunhanh - Lecture Money and capital markets: Financial institutions and instruments in a global marketplace (8th edition): Chapter 21 - Peter S. Rose

Chapter 21 - Business borrowing. This chapter focused upon businesses raising funds by borrowing in the open market and by seeking loans extended by banks and other financial institutions. | Money and Capital Markets 21 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu Business Borrowing Learning Objectives To look at how business firms issue debt securities and negotiate loans in order to raise funds in the money and capital markets. To learn about the key factors affecting the volume of funds that businesses seek to raise in the financial system. To see the often powerful impact that business borrowing has upon market interest rates and credit conditions. Introduction Business firms draw on a wide variety of fund sources to finance their daily operations and to carry out long-term investment. In 2000, nonfinancial business firms in the . raised about $1,250 billion, of which approximately $860 billion was supplied from the financial markets through issues of bonds, stocks, notes, and other financial instruments. Factors Affecting Business Activity in the Money | Money and Capital Markets 21 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose McGraw Hill / Irwin Slides by Yee-Tien (Ted) Fu Business Borrowing Learning Objectives To look at how business firms issue debt securities and negotiate loans in order to raise funds in the money and capital markets. To learn about the key factors affecting the volume of funds that businesses seek to raise in the financial system. To see the often powerful impact that business borrowing has upon market interest rates and credit conditions. Introduction Business firms draw on a wide variety of fund sources to finance their daily operations and to carry out long-term investment. In 2000, nonfinancial business firms in the . raised about $1,250 billion, of which approximately $860 billion was supplied from the financial markets through issues of bonds, stocks, notes, and other financial instruments. Factors Affecting Business Activity in the Money and Capital Markets Many factors affect the extent to which business firms draw on the money and capital markets for external funds: Total funding demands of business firms Level and expected growth of internally generated funds Condition of the economy Credit availability and interest rates Characteristics of Corporate Notes and Bonds A note has an original maturity of five years or less, while a bond carries an original maturity of more than five years. Both securities promise the investor an amount equal to the security’s par value at maturity plus interest payments at specified intervals. They are generally issued in units of $1,000, and accompanied by indentures. Characteristics of Corporate Notes and Bonds Corporate bonds tend to be issued with longer maturities when both interest rates and inflation are low. Some corporate bonds are backed by sinking funds. A considerable proportion of corporate bonds that are outstanding today carry call privileges. Characteristics of Corporate

• Tài chính doanh nghiệp
• Capital markets
• Money markets
• Financial institutions
• Financial instruments
• Global marketplace
• Business borrowing
• Financial system
• Financial markets
• Central banks
• Monetary policy
• Stock markets
• Lecture Money and capital markets
• Global economy
• Financial assets
• Financial transactions
• Financial information marketplace
• Financial forces
• Interest rates
• Calculating interest rates
• Risk structure of interest rates
• Interest rate forecasting
• Investment risk
• Major corporations
• Federal credit agencies
• Services of the federal reserve
• Central bank monetary policy
• Commercial banking industry
• Nonbank thrift institutions
• Insurance companies
• Investment banks
• Federal reserve system
• Local governments operating
• Corporate stock
• Consumer lending
• Residential mortgage market
• International transactions
• Currency values