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Securities Markets And Investment Bankers – Video & Lesson Transcript

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Securities Markets And Investment Bankers - Video & Lesson Transcript 1

Meet Sarah. She’s begun a green energy company that designs and creates wind turbines. Her business is growing quickly and successfully, but she actually is working out of money to fuel its growth. In fact, she needs a lot money that her bankers don’t want to consider the risk of loaning her the tens of millions of dollars necessary for her business to go to the next level.

However, Sarah can seek capital through the securities marketplaces. Securities are usually either stocks and shares or bonds. A stock, known as equities or shares also, is an ownership fascination with a company. You can think of stock stocks as owning a talk about – or part of – the ongoing company. A bond, called a debenture sometimes, is a debt instrument, which really is a promise to repay a debt. Stocks and bonds are exchanged in markets.

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A securities market is a market where securities are exchanged either in physical or electronic exchanges. Securities markets are divided between stock marketplaces and relationship marketplaces generally. A stock market involves the trade of equity securities, that are ownership interests of an organization known as stocks commonly. Some of the most important stock exchanges in the global world include the New York Stock Exchange, the NASDAQ, Tokyo Stock Exchange, London STOCK MARKET, Euronext, Hong Kong Stock Shanghai, and Exchange Stock Exchange.

A relationship market involves the trade of debt securities. Then becoming owners of the company Rather, the investors become creditors of it. The securities market can be divided between secondary and main markets. You are most familiar with the supplementary currency markets probably. A secondary market is where traders go to buy bonds and stocks from other traders. Yep, that’s right – most people buy ‘used’ stocks and bonds. You can think of the supplementary market as selling secondhand stocks (not new).

Sarah is more interested in the primary market where new stock or bonds are initially sold to the public. Remember that primary can indicate first, as with the first sale. This offering on the primary market is usually known as an initial open public offering (IPO). For example, the first shares of Facebook were sold on the principal market.

Investors who bought those shares may later operate them to other investors on the supplementary market. Sarah can try to sell stocks of her company on the principal market to improve the capital needed to broaden her business. Sarah looks for the help of Irene, who’s an investment banker. An investment banker does not loan money but rather helps companies either raise money through IPOs or restructure through mergers and acquisitions where one company may purchase and merge with another company. Irene can help Sarah makes her company’s preliminary public offering and ensure that the offering complies with the complicated set of laws and regulations to which IPOs are subject.

Irene’s bank or investment company will either underwrite the problem of stock or focus on a best-efforts basis. If Irene’s investment bank or investment company underwrites the issue, it’ll purchase all the stock Sarah desires to provide to the primary market and guarantee a certain price that Sarah will get. Irene’s bank or investment company will purchase the stock from Sarah at a discount and change and sell the stock at its full offering price to the public at the IPO.

Note that the first surface rover could provide sufficient floor truth to start the harvesting of a lot more detailed understandings from the existing polar spacecraft data pieces. LCROSS is an excellent exemplary case of this. Q. To force your lunar mining facility you baselined nuclear power but were considering a fresh generation of solar-powered energy as well. What’s your current preferred lunar power source and why?

Brad Blair: Nuclear power is the main element to steady-state mining and mineral processing operations. The good reason for this is that other that wear & scratching, most of the nagging issues with mining equipment happen when the equipment is turned off and then back again on. For equipment operating in locations that are only 25 Kelvin, this will likely be exacerbated, especially since engineers prefer to design spacecraft components to operate at laboratory temperature ranges currently.