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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
[(face value - purchase price) / face value] x (360/days to maturity)
The formula for the discount yield of commercial paper
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
bank issued, fixed maturity, interest bearing, time deposits that specify their interst rates and maturity dates and are negotiable (can be sold). - It is a bearer instrument. - denominations range from $100,000 to $10 million. - Money market mutual funds buy negotiable CDs and sell them to pools of individual investors. - Issuing bankds post daily rates for CDs and sell them to investors - sometimes a bank & an investor will negotiate the size, rate, and maturity of a CD. - The secondary market for negotiable CDs is small and not very active - Large banks can offer CDs at lower rates than smaller, less well-known banks
Negotialbe certificates of deposit (CDs)
[]
cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
are time drafts payable to sellers of goods, with payment guaranteed by the banks. - bankers' acceptances often finance import-export deals, when foreign exporters want to be sure they'll be paid for their goods. If the importer fails to pay for the goods, the exporter can hold the banker's acceptance until its maturity date or because it is negotiable, sell the acceptance at a discount to a buyer in the money market. - Thus, banker's acceptance not only guarantee payments for imports-exports but also create a secondary market. - Only large US banks are active in teh bankers' acceptances market.
Bankers' acceptances
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- The Treasury sells new issues of T-bills through Treasury bill auctions. Every week the Treasury annonces the 13 week and 26 week T-bills it plans to sell. - Interested buyers must get their bids in to a Federal Reserve Bank by 1 pm on the Monday following the announcement. - The Treasury announces the allocations and the prices of its T-bills the next day, and delivers the bills by the following Thursday.
How to trade US treasury bills, the primary market (1 of 2)
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Either: Competitive: which specify the desired quantity and price of the T-bills or Noncompetitve: which specify the desired amount of T-bills and agree to pay the weighted-average price of winning competitive bids - The highest competitve bidder gets the first allocation of T-bills - The rest of the T-bills are distributed from highest to lowest bidders - No one bidder may receive more than 35% of the total issue - All bids that are awarded in full are called "winning bids" - Non competitive bids are allocated T-bills before non-winning competitve bids are filled.
Submitted bids are: (2 of 2)
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
The T-bill secondary market is the largest in the US. The largest dealers are the primary government securities dealers, consisting of about 30 financial institutions named by the Federal Reserve Bank of NY. Those dealers create the T-bill secondary market by buying and selling securities for themselves and for their customers. - Another 500 smaller dealers trade directly in the secondary market. The secondary market is decentralized, with most trading being conducted by telephone or wire.
How to trade US treasury bills: The secondary market
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
1. The US treasury 2. The Federal Reserve 3. Commercial banks 4. Brokers and dealers: a. Primary gov't security dealers b. Money and Security brokers c. Smaller brokers and dealers 5. Corporations 6. Other financial instituations a. insurers b. finance companies c. money market mutual funds
Money Market Participants (6)
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
primarily a seller in money markets. The US Treasury issues T-bills to raise money for short -term expenditures while it waits for tax revenues.
The US Treasury
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
a major buyer and seller in money markets. The Fed: - buys or sells T-bills to increase or decrease the money supply - buys and sells repurchase agreements to stabilize interst rates and the money supply - affects money market rates by targeting the fed funds rate - affects the deman for and supply of fed funds and repurchase agreements through its operation of its discount window
The Federal Reserve
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
buy and sell almost all types of money market instruments, usually to meet reserve requirements and make better use of excess reserves
Commercial banks
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- market new issues of Treasury securities - run the secondary market for T-bills - help the Federal Reserve use repo markets to affect the supply of bank reserves
Primary Government security dealers
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- act as intermediaries for gov't securities dealers, and - link buyers and sellers in the fed funds and others secondary markets
Money and security brokers
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
link smaller buyers and sellers in several secondary markets
Smaller brodkers and dealers
[]
cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
issue commercial paper and invest excess cash in money market securities
Corporations
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Insurers - which use money market instruments to maintain liquidity Finance companies - which raise funds through money markets (primarily by using commercial paper) Money Market mutual funds - which buy money market securities and sell shares of them to small investors
Other financail institutions
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Foreign investors are buying and selling more US money market secureities every year. hence foreign money markets are in a growht stage. Becaue many interanational finance contracts call for payment in US dollars, both foreign and US gov't and businesses like to hold European deposits to facilitate spending. Eurodollars trade in the Eurodollar market.
Euro Money Markets
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
US dollar-denominated deposits in foreign bandks, no just European banks
Eurodollar deposits
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
London's largest banks operate an interbank Eurodollar market, which is used by banks aroudn the world as a source of overnight funding. The rate in that market is called the LIBOR, which is generally higher than the fed funds rate due to the higher risk of foreign bank deposits.
London Interbank Offered Rate (LIBOR)
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
1. Eurodollars CDs (US dollar-denominated CDs in foreign banks) 2. Euronotes (Short-term, dollar-denominated notes similar to commercial paper) 3. Eurocommercial paper (Eurosecurities issued by dealers of commercail paper w/out involving any bank) The rate of return for the Eurodollar CDs was consistently higher than the return rate for the US bank CDs up until the 1990's when the 2 rates became virtually identical.
Euromarket securities
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
facilitate the trading of stocks, notes, bonds, mortgages, and other long-term debts instruments.
Capital Markets
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
long term debt instruments issued by corporations and gov't units to raise funds for long-term operations. The bond issuer promises to pay the face value of the bond upon maturity plus coupon interst. Bonds are issued and traded on bond markets.
Bonds
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Treasury notes and bonds, municipal bonds and corporate bonds
3 types of bonds
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
-backed by the US gov't and thus have no risk of defualt. - pay low interest rates and are subject ot interest rate risk - old notes and monds are not as liquid as new notes and bonds - they pay coupon interst semiannually and are issued in minimum denominations of $1,000 T-note maturities range from 1 to 10 years, while T-bond maturities range from 10 to 30 years.
Treasury notes (T-notes) and Treasury bonds (T-bonds) FEATURES
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
is a Treasury security that separates the interst payments from each other and from the final principal payment. Each component of a STRIP is called a "Treasury zero-coupon bond" because the investor in an indvidual component receives only the interest payment attached to that component. - sold through financial institutions and gov't securities brokers and dealers. - investor use STRIPS to meet investment duration needs and to reduce interst rate risk. - Investor can buy a STRIP that will pay a specific sum of money at a specified future date. - Because STRIPS involve no intervening payments or reinvestment, they are not affected by interest rate changes. - Most T-notes and T-bonds can be stripped - Their interest payments are exempt from state and local income taxes
STRIP - (Separate Trading of Registered Interest and Principal) Security
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
in an inflation-indexed bond that provides returns ited to the inflation rate. Teh coupon rate on TIPS is determined by an auction process.
Treasury Inflation Protection Securities (TIPS) bond
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Ther present value of a T-bond or T-note equals the present value of its coupon payments plus the present value of its face value. When an investor buys a T-note or T-bond between coupon payments, he must pay the seller accrued interest. The bond price w/out accrued interest is called the clean price. Teh bond price plus accrued interest is called dirty price or full price.
Treasury notes (T-notes) and Treasury bonds (T-bonds) YIELDS
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
The Treasury sells them through competitve and noncompetitve auctions. Gov't securities dealers, businesses, and individuals submit bids through a Federal Reserve Bank until noon or one the day before the auction. Awards are announced the following day. Highest priority goes to the highest bid prices. Most secondary trading is done through brokers and dealers.
Treasury notes (T-notes) and Treasury bonds (T-bonds) TRADING
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Issued by state and local gov't to fund tempoarary imbalances between expenditures and receipts and/or to finance long-term projects.
Municipal Bonds
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cpcu 560 Flashcards - Cram.com
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- repaid out of tax receipts. Their interest payments are exempt from federal income taxes and from most state adn local income taxes. - Municipal bonds are issued in denominations of $5K and larger - There is a secondary market but it is not as active as the Treasury secondary market.
Municipal Bond FEATURES
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
General obligation bonds are backed by the issuer's full faith and credit and require taxpayer approval before they are issued.
General obligation bonds
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
-- A revenue bond finances a specific revenue generating project and is paid back from the cash flows from that project. They are riskier thand general obligation bonds because if the project fails the bonds are not repaid.
Revenue bonds
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
To convert a municipal bond rate to a corporate (taxable) bond rate, divide the municipal bond rate by (1 - marginal income tax rate of the bondholder). To convert a corporate bond rate to a municipal bond rate mulitply the corporate bond rate by (1 - marginal income tax rate of the bondholder)
Municipal Bonds YIELDS
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
Neew issues are sold publicly, through an investment bank that acts as security underwriter, or by private placement.
Municipal Bonds TRADING
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- Large issues can be sold nationally - Small issues can be sold locally - The UW invetment bank uses firm commitment underwriting, - The bank can buy the bonds through competitive bidding or through direct negotiation with the issuer - Some bonds are offered on a best efforts underwriting basis - Publicly traded bonds must be registered with the SEC - There is a thin secondary market
Public Trading
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
the bank guarantees the issuer a bond price by buying the entire issue and then reselling all the bonds at higher prices
Firm Commitment Underwriting
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
the bank does not guarantee the issuer a price and places bonds with investors on a fee basis
Best Efforts underwriting
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- The municipality, sometimes with the help of an investment bank finds a large buyer or a group of buyers to buy the entire issue - Private placements do not have to be registered with the SEC - Issuers like private placements because they don't have to register the bonds - Investors like private placements because they pay higher interest rates than publicly-traded municipal bonds - There is a very thin secondary market
Private Placement
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
are long-term bonds issued by corporations. They come with bond indenture. The bond indenture lowers the risk and therefore the interest rate, on the bond. - A trustee, generally a bank trust department, is the bondholders' representative, overseeing the issuer's performance and initiating any legal action against the issuer. - Corporate bond interest payments are raxable at federal, state, and local levels.
Corporate bonds
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Central banks influence their country's rates
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the contract that specifies the responsibilities and rights of the issuer and of the buyer.
Bond Indenture
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Central banks influence their country's rates
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Bearer Bond Registered Bond Term Bond Serial bond Mortgage bond Equipment trust certificate Debenture Subordinaed debenture Convertible bond Stock warrant Callable bond Sinking fund provision
Kinds of corporate bonds
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Central banks influence their country's rates
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
has coupons attached to the bond, which the holder presents to the issuer for payment of interest with they come due
Bearer Bond
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Central banks influence their country's rates
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mails coupon payments to the registered bond owner. Registered bonds have largely replaced bearer bonds because they are more secure (and more easily taxed)
Registered Bond
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has the entire bond issue mature on the same date
Term bond
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
part of an issue with several matuirty dates. Allow repayment over time and hence are better than term bonds for corporations with volatile incomes.
Serial bond
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10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
finances a specified project, which is pledged as collateral for th ebond. A mortgage bond is secured debt.
Mortgage bond
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collateralized with tangible non-real estate property
Equipment trust certificate
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is an unsecured bond backed by the issuer's general credit.
Debenture
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an unsecured bond that is junior to mortgage bonds and to regular debentures
Subordinated debenture
[]
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may be exchanged for another security (usually common stock) of the issuing firm at the bondholder's discretion. - Interest rates are lower than for nonconvertible bonds because the bondholder also receives an investment opportunity not available to other bondholders
Convertible bond
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lets the bondholder buy common stock at a specified price up to a specified date. - The bondholder keeps the bond whether he buys stock or not. - The bondholder may also sell the stock warrant and keep the underlying bond.
Stock Warrant
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a bond with a call provision. The issuer calls the bond when the interest rate drops, so it can retire high interest rate bonds and issue new, low-interest bonds.
Callable bond
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Lets the issuer force the bondholder to sell the bond back a given (call) price
Call Provision
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the difference between the call price and the face value.
Call premium
[]
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requires the issuer to retire a certain amount of the issue each year. The issuer makes periodic payments to the sinking fund, which the trustee uses to retire that year's bond. - Investors like sinking fund provisions because they reduce default risk.
Sinking Fund Provision
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The issuer sells corporate bonds through a public sale or private placement, just as with municipal bonds.
Corporate bonds - how are they sold
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The exchange market and the OTC over the counter market. The OTC market is much more active than the exchange market.
Corporate bonds have 2 secondary markets
[]
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Bond rating agencies like Moody's and Standard and Poor's evaluate each bond's risk of default. - Each bond receives a letter grade ranging from AAA to C or D (riskiest) - The agencies evaluate the bond's likelihood of payment, the entire issue's nature and provisions and the protection in the fent of bankruptcy or reorganization
Bond Ratings
[]
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Bonds rated Baa or higher by Moody's or BBB or higher by S&P. Financial Institutions are prohibited by law from buying non-investment grade bonds
Investment Grade Bonds
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Bonds below investment grade
Junk bonds or higher yield bonds
[]
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The major bond issuers are federal, state, and local gov't and corporations. - Foreign investors, gov't units, financial institutions, and households buy most bonds. - Investments by households are sometimes underestimated because household savings deposited in financial institutions often get invested in bonds.
Bond Market Participants
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the difference between the highest and lowest interest rates offered by different types of bonds at the same time. Yield spreads change as bonds' default risks, tax status, and marketability change.
Yield Spread
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Central banks influence their country's rates
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A. Trade bonds that are underwritten by an dinternational syndicate. B. Offer bonds simultaneously to investors in different countries C. Issue bonds in more than one country D . offer unregisterd bonds
International Bond Markets
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Before 2004, most international bonds wer denominated in US dollars. The euro is now the most prevalent curreny for denominating international debt.
International Trade In Bonds - CURRENCY
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Eurobonds Foreign bonds Brady bonds
International Trade in Bonds TYPES OF BONDS
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- Long term bonds sold outside the country of the currency in which they are denominated - They are bearer bonds, traded in over-the-counter markets - Because of the volatility of interest rates in the country of the chosen currency affects the overall cost of the bond, issuers choose currencies with stable interest rates.
Eurobonds
[]
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long-term bonds issued by firms and gov't outside the issuer's home country - Foreign bonds are denominated in the currency of the country of issue
Foreign bonds
[]
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- bonds backed by US T-bonds as collateral, that are swapped for o/s loans in developing countries. - offer longer maturity and lower yeild than the underlying loan. - let developing contures borros money from longer time periods, at lower interst rateds, and they provide creditor banks securities that can be traded, theus increasing the banks' liquidities. - some have been converted to Sovereign bonds.
Brady Bonds
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Brady bonds w/out US T-bond collateral backing
Sovereign bonds
[]
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1. Dividends 2. Residual Claims 3. Limited Liability 4. Voting
Common Stockholders have the rights to...
[]
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Stockholders receive a share of the issuing firm's profits once the firm has paid its taxes and interest to bondholders. - The firm's board of directors determines the amount of dividends, and may choose to reinvest all profits instead of paying any dividends at all. - Stockholders are often satisfied with a company that reivests its profits because growing firms also have growing stock prices. - Stockholders can sell their shares and pay capital gains taxes on their profits (gains) instead of paying (higher) income taxes on their dividends (earinings)
Dividends
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Central banks influence their country's rates
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Stockholders may claim the assets of a failed or dissolved form, after all debt and taxes are paid.
Residual Claims
[]
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Stockholders' losses are limted to the amounts of their original investments.
Limited Liability
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has 2 classes of common stock o/s with different voting rights. - Classes of stock with inferior voting rights often have higher dividend rights. A stockholder may cast his vote at the firm's annual meeting or by proxy. Teh # of votes each stockholder has equals his number of shares mulitplied by the # of directors up for election, but the stockholder may use all of his votes to vote for one candidate.
Dual Class Firm
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all diretors up for election are voted for at the same time. Allows minority stockholders the chance to elect at least soem of the board members.
Cumulative Voting
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each director is boted on individually, with one share equaling one vote.
Straight Voting
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Bondholders do not own the firm that issues their bonds, but their claims to earnings and assets are superior to those of stockholders.
Bondholders vs. Stockholders
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1. Dividends 2. Residual claims 3. Limited liablity 4. Voting rights
Preferred Stockholders have the right to....
[]
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Central banks influence their country's rates
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Preferred stockholders are paid before common stockholders
Preferred Stockholders dividends
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Central banks influence their country's rates
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Preferred stockholders are paid before commond stockholders
Preferred Stockholders Residual claims
[]
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Preferred stockholders' losses are limited to their original investments
Preferred Stockholders Limited liability
[]
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Preferred stockholders' generally do not have voting rights, unless prior cumulative preferred dividents have not been paid
Preferred Stockholders voting rights
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Capital Gains - if the stock appreciates over time Dividends - if declared by the board of directors
Corporate Stocks offer 2 types of returns
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Are preset at a fixed rate
Preferred Stock Dividends
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bary and are paid at the board's discreation
Common Stock Dividends
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confers a fundamental, residual claim of ownership in a public corporation
Common Stock
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is a hybrid of bonds and common stocks. - Like bonds, prefered stocks pay fixed periodic payments. - Like common stock, preferred stock represents ownership in teh issuing firm. - Preferred stock is usually nonparticipating (the dividend is fixed, regardless of profits) and cummulative (prior missed dividends must be paid before current common stock dividends can be paid)
Preferred Stock
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may pay actual dividents that are greater tha promised dividends
Participating preferred stock
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does not pay missed dividends
Noncumulative preferred stock
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- missed dividends scare new investors - stockholders must be paid a rate of return that compensates them for the risk of missed dividends - dividends are not tax-deductible expenditures, as are bond payments
Preferred stock can bring disadvantages to corporations because
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[(current price - price on year ago) / (price one year ago)] + (last annual dividend / price one year ago)]
The return on a stock over hte past year (formula)
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- facilitates the buying and selling of new issues of stocks - Most primary market stock sales go through investment banks which sell securities using either firm commitment underwriting or best effort underwriting
Primary Market
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guarantees the issue's selling price - the investement bank buys the entire issue for a guaranteed price (net proceeds) and sells the individual stocks to investors for a higher price (gross proceeds)
Firm commitment underwriting #2
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equals the difference between gross proceeds and net proceeds. - Investment bansk often introduce a new issue through a syndicate to spread the risk of selling stocks and to contact a wider pool of investors. - The lead investment bank in syndicate is called the oriinating house.
The underwriter's spread
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a group of investment banks that distribute securities
Syndicate
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a firm's very first issue of stock
Initial public offering
[]
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firms that already have shares trading in the secondary maket offer seasoned shares in the primary market
Seasoned shares
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offered to the general investing public
Public sale
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
http://www.cram.com/flashcards/cpcu-560-975473
50/1438042985647.51_20150728002305-00022-ip-10-236-191-2_370580553_0.json
10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
offered to a limited number of large investors
private placement
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
http://www.cram.com/flashcards/cpcu-560-975473
50/1438042985647.51_20150728002305-00022-ip-10-236-191-2_370580553_0.json
10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
which give stockholders the option (but not the obligation) to buy their proportional shares of any new issues before those new issues are offered for public sale or private placement
Some states and corporate charers give stockholders preemptive right...
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
http://www.cram.com/flashcards/cpcu-560-975473
50/1438042985647.51_20150728002305-00022-ip-10-236-191-2_370580553_0.json
10224d08_cpcu_560_Flashcards___Cram_com__nfluence_their_country_s_rates
- All stocks sold publicly must be registered with the SEC. - The registration statement focuses on full disclosure about the firm and its securities - Since 1982 the SEC has allowed a fater and less expensive form of registration called a shelf registration, which lets the firm register mulitple issues of stock over 2 year period in 1 registration statement.
Registration with SEC
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cpcu 560 Flashcards - Cram.com
Central banks influence their country's rates
http://www.cram.com/flashcards/cpcu-560-975473
50/1438042985647.51_20150728002305-00022-ip-10-236-191-2_370580553_0.json