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12 Cards in this Set
- Front
- Back
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Debt + Equity = |
Capital structure |
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Debt |
Creditors, bondholders , debtholders |
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Equity |
Shareholders, Equity Holders |
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Give an example of when equity is good choice |
When company has been doing poorly and no one would lend money (bank) or buy bonds(people) |
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Capital Budgeting |
The process of managing a firms long term finances |
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Working capital management |
The process of managing a firms short term assets and liabilities. |
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Main goal of financial management |
Maximize shareholders equity. |
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Primary Markets |
IPO, S.O , firms selling securities to investors. money raised goes to issuing firms. |
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Secondary Markets |
Investors sell securities to each other. Money raised goes to securities seller. (share price) |
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Dealer market |
Dealer buys and resells at profit. Ex : Car dealership. |
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Agency market |
Hire agent to sell for you. They charge commission. Ex : Real Estate. |
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Google . 1996 |
Funding of 100k from 1 of the founders of sun microsystems. Venture capitalists then invested 25 mill within 1 year. |
