Differentiate between money markets and capital markets

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Reference no: EM131018259

This is a case analysis relate to Financial Management area. The case is a formal paper 5 to 8 pages long (double spaced with ‘Time New Romans Font 12' excluding title page and references). The paper should be formatted using APA style (https://owl.english.purdue.edu/owl/resource/560/01/).

Jagdambay Exports (https://www.jagdambayexports.com/), a manufacturer and exporter of Baby Wears Garments, is considering ‘‘going public'' to raise funds to expand in USA. The Chief Financial Officer (CFO) of Jagdambay Exports has approached the investment banking firm at which you work seeking help with its decision. Your boss asked you to explain the nature of the U.S. financial markets and the process of issuing equity to the CFO of Jagdambay Exports.

To help with this task, your boss has asked you to answer the following questions in explaining the U.S. financial system to CFO of Jagdambay Exports:

a. What is a financial market? How are financial markets differentiated from markets for physical assets?

b. Differentiate between money markets and capital markets.

c. Differentiate between a primary market and a secondary market. d. If Jagdambay Exports decided to issue additional common stock, and an investor purchased 1,000 shares of this stock from Merrill Lynch, the under-writer, would this transaction be a primary market transaction or a secondary market transaction?

d. Describe the three primary ways in which capital is transferred between savers and borrowers. 1 / 2

e. Securities can be traded on physical exchanges or in the over-thecounter market. Define and describe each of these markets

Reference no: EM131018259

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