Question: Hello class, I am going to walk you through some basic concepts of financial markets and on what impact they have on companies like the
Hello class, I am going to walk you through some basic concepts of financial markets and on what impact they have on companies like the one where I work. A top mechanic of a primary market will be what I explain first. In the primary market, companies release new securities straight to investors to raise capital. A top mechanic here is the Initial Public Offering IPO process. Which is when a private company shares it for the first time to the public. The funds obtained from the IPO go to the company directly. Letting it advance into growth or pay down debt or fund in operations. This is important because in operations we help facilitate these transactions. We make sure securities areissued correctly, that the regularities are met and that the capital that is raised flows smoothly to the company, so that they can survive.
In a secondary market, securities are traded between the investors after they have been initially issued. Liquidity is the top mechanic here, making it easy for investors to instantly buy or sell securities at visible prices. Stock exchanges provide this platform. This creates confidence. This makes investors more apt to buy a companys share if they know they may be able to sell in a secondary market easily. In my position I make sure the trades can happen easily and effectively.
The action of both of these markets will directly impact how greatly financial institutions like the one I work for willperform and serve their clients effectively.
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