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Firms raise capital from investors by issuing shares in the primary markets does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?
Wiki User
∙ 14y ago
It can be never ignored. It is inevitable for a firm to seek funding sources for further growth as a going concern entity. The funding method would mostly take a form of issuing either bonds or stocks. For the firms seeking funding, the price of the previously issued shares can affect the company's financial decisions directly. This also relates to repurchasing its shares or using its shares to finance a merger or acquisition.
Wiki User
∙ 14y ago
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Does a company receive money for stocks traded in Secondary market?
No. The stocks traded in the secondary market are considered previously issued securities that do not involve the original issuing company that issued the stock in the primary market. The owners of the stock traded in the secondary market changes when traded and the monetary exchange would be between the original investors from the primary market not the company whose stock is being traded.
Investment in previously issued stocks is carried out be means of the?
my pe***lol secondary market
How do primary and secondary financial markets differ?
In the primary financial market money goes directly to the person or company who will be spending it, for example, if a person/company takes a loan out of the bank they will spend it on certain products in the market. In the secondary financial market, already existing financial assets are transferred from one saver to another. For example, if you don't want to be a part owner in a company anymore, you can sell your share as a secondary financial asset on the stock market. A transfer in the secondary market does not represent any new saving.
What type of bonds cant be sold on the secondary market?
Bonds are traded between investors in the secondary market. However, unlike stocks, most bonds are not traded in the secondary market via exchanges. In the secondary market transactions, the bond does not have to be traded for its original issue price.
What is the secondary mortgage market?
This market consists of investors who buy mortgages from primary lenders, such as banks and thrifts, so that the lenders can use that money to make new loans.
What is Secondary Marketing Data?
Secondary marketing data is data that has been collected and analyzed previously. Such secondary data can be previous market performances of competing company products or consumer buying behavior in financial publications. Secondary data is cost effective in market research due to the costs of evaluating and conducting such research already has been completed.
Does a company receive money for stocks traded in Secondary market?
No. The stocks traded in the secondary market are considered previously issued securities that do not involve the original issuing company that issued the stock in the primary market. The owners of the stock traded in the secondary market changes when traded and the monetary exchange would be between the original investors from the primary market not the company whose stock is being traded.
How is the primary market dependent on the secondary market?
The primary market is where companies initially sell their stocks or bonds to raise money, while the secondary market is where these securities are traded among investors. View this like selling a new product in a store (primary market) and then upscaling it to be resold in a second-hand market (secondary market). The primary market depends on the secondary market since it delivers a way for investors to easily buy and sell the securities they purchased originally. Without the secondary market, investors might be less eager to buy securities in the primary market since they wouldn't have a stress-free way to sell them later if desired.
Does plate shifting cause previously unseen rock layers to be exposed?
Plate shifting that causes previously unseen rock layers to be exposed by secondary succession. Primary succession is number 1.
Investment in previously issued stocks is carried out by means of the?
secondary market............. b
What is financial listing?
listing in secondary market either equity or debt(debenture) is known as financial listing
What does the state do for primary and secondary education?
Provides financial assistance.
How do primary and secondary financial markets differ?
In the primary financial market money goes directly to the person or company who will be spending it, for example, if a person/company takes a loan out of the bank they will spend it on certain products in the market. In the secondary financial market, already existing financial assets are transferred from one saver to another. For example, if you don't want to be a part owner in a company anymore, you can sell your share as a secondary financial asset on the stock market. A transfer in the secondary market does not represent any new saving.
Investment in previously issued stocks is carried out be means of the?
my pe***lol secondary market
What type of bonds cant be sold on the secondary market?
Bonds are traded between investors in the secondary market. However, unlike stocks, most bonds are not traded in the secondary market via exchanges. In the secondary market transactions, the bond does not have to be traded for its original issue price.
What types of things can lead to secondary succession?
Secondary succesion occurs naturally after an ecosystem was previously disrupted. Like after a forest burns down, secondary succesion would occur to fix it.
