1. The Role of Financial Managers
... additional stock in the future. When a business sells securities to investors in exchange for cash, it raises capital in a primary market transaction. In such a transaction, money flows from investors to firms, and the firms invest the money they receive to exploit investment opportunities. On the other side of the transaction, investors holding the firms securities can trade them with other investors. Trades between investors generate no new cash flows for the firm and ... and most creditworthy firms raise large amounts of short-term funding by issuing commercial paper directly to inve...
- Word Count: 1383
- Approx Pages: 6
- Grade Level: Graduate