《management企业管理类英文版PPT课件17.pptVIP

Chapter 17 – Investment Banking Securities Law INTRODUCTION TO CORPORATE FINANCE Second Edition Laurence Booth ? W. Sean Cleary Lecture Agenda Learning Objectives You should understand the following: That the core problem in raising capital is information asymmetry, which, in extreme cases, can to lead to fraudulent activities The importance of securities laws and regulations in financial markets The basic steps included in the initial public offering (IPO) process What is included in a prospectus and why it is critical for IPOs Why continuous disclosure requirements are important for investors, and how they affect secondary offerings. Participants in Securities Markets Investment Banking and Securities Law Issuers and Investors in Securities Issuers of Securities Corporations must issue securities to raise capital in order to invest in plant/equipment, working capital, research and development in order to produce products and services that meet needs in a competitive market environment. Corporations must design securities that meet the investing needs of investors. Investors in Securities Investors has surplus cash at the moment, but hope to transform that cash into larger sums in the future by investing in appropriate securities Some investors have long investment time horizons and have the capacity to accept risk (for example a large pension fund) Other investors have short investment time horizons, require a liquid investment and do not have the capacity to accept risk Other Participants in the Markets for Securities In addition to issuers and investors there are other participants in the financial markets including: Financial intermediaries that bring buyers and sellers of securities together (brokers) Underwriters (that help issuers bring new security issues to market) Speculators Arbitrageurs Given the diversity of parties, interests, goals, skills and access to information, the financial marketplace is an attractive target for scam artists who see