Summary of chapter 10 Essay Example | Topics and Well Written Essays - 250 words

Summary of chapter 10 - Essay ExampleThis is unlike the eluding in dividends on line of credit thus, stockholders are less likely to acquire fiscal returns as compared to bondholders (Kelly & McGowen 135). commerce securities markets are of two types primary and junior-grade markets. Primary securities market refers to when corporations gain more financial outstanding by selling new securities (Kelly & McGowen 137). On the other hand, secondary securities market trades the previous securities to gain financial capital. Issuing of securities in the primary market occurs in two methods, that is, through a public oblation or private placements. Private placements are faster, easier and cheaper as compared to a public offering (Kelly & McGowen 138).In the secondary market, the pisseds that issue bonds and stock do not receive additional finance when they trade their securities. However, an advantage to the firm is that, at secondary market price, of their stock reflects the investo r opinion about the firms management (Kelly & McGowen 138).Investors convey to keep track on the performance of securities in the market. A major way is to track stock indices. These include Dow Jones Industrial average, Standard and Poors 500 and the NASDAQ Composite Index. These indices help to update the investor and sharpen him or her in the way of investing (Kelly & McGowen