You are a new economist for a major financial institution, and you’ve been invited to speak as a guest lecturer for a Freshman Finance course at the local university. Respond to the following in a...

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You are a new economist for a major financial institution, and you’ve been invited to speak as a guest lecturer for a Freshman Finance course at the local university.






Respond to the following in a minimum of 175 words:



  • Share how you would describe the overall purpose and mechanics of both primary and secondary markets.

  • How would you explain the way the performance of your company is influenced by the activity of the markets you described?

  • After your initial post, choose a classmate’s approach that is different from the approach you’d take on the guest lecture. What additional information might you include in your lecture based on your classmate’s approach?

Answered Same DayFeb 24, 2021

Answer To: You are a new economist for a major financial institution, and you’ve been invited to speak as a...

Abhinaba answered on Feb 24 2021
144 Votes
Primary and Secondary Markets        1
PRIMARY AND SECONDARY MARKETS
Primary and Secondary Markets
Be
ing an economist of a major financial institution, capital market is the place, where I belong. The term capital market means any part of the financial system that raises capital from bonds, shares and other investments. Capital market can be categorized into two parts: primary market and secondary market. Whenever, a company sells bonds or stocks for the first time publicly, it is done in primary market (Lazonick, 2017). Sometimes the new issue can take the form of Initial Public Offering (IPO). If investors buy shares on the primary stock market, an underwriting agency pays the company that sells the securities to review them and produce a prospectus...
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