Term
| Corporate sources and uses of funds |
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Definition
3 Sources:
Internally generated cash
Short term external
long term external |
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Term
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Definition
Equity: New stock issues play a relatively small and declining role
Debt: Debt accounts account for overwhelming share of external funds |
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Term
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Definition
AS (Anglo Saxon) Model: Shareholder system votes.
Continental Europe and Japanese CEJ model: lots of cross ownership |
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Term
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Definition
| System of interlocking directors: See slide in notes. |
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Term
| Globalization of financial markets |
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Definition
Global Center Competition
Regulatory Arbitrage: issue and trade securities in financial centers with lowest regulatory standards and costs. |
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Term
| Three Major Types of Foreign Bonds |
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Definition
Fixed Rate, Floating Rate, Equity Related
Yankee Bonds: $denominated foreign bonds in the US.
Samurai Bonds: Yen denominated foreign bonds in Japan |
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Term
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Definition
Internationall:
Can)
Diversify Risk
Increase potential demand
Spread firms name in local market |
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Term
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Definition
| Offerings usually denominated in $ that are registered in several national jurisdictions (Sell simultaneously in several countries) |
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