Tuesday, January 31, 2012
Marketing Financial Assets
New financial instruments and securities are created and sold in the primary security market. For example, a business may want to sell shares or ownership, called stock, to the general public. It can do so directly, but the process of finding individuals interested in investing funds in that business is likely to be difficult, costly, and time-consuming. A particular financial intermediary, an investment banking firm, can handle the sale of shares of ownership. The function of the investment banking firm is essentially one of merchandising. Brokerage firms market existing or "seasoned" instruments and securities.
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