This course will discuss capital markets, investment banking, & long-term debt and lease financing.
We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.
Types of security markets include money markets and capital markets. Money markets are short-term in nature, with securities that have maturities of one year or less. Capital markets are long-term markets with securities that have maturities greater than one year. Our focus will be on capital markets.
Capital markets help link up businesses that need money to expand with investors who would like to find a good investment for their money.
Investment bankers often act as a middle person between the company issuing securities and the investors, the investment bankers taking on substantial risk as they play their role in the process. Investment bankers design and package securities, make offers, and sell to the public.
Commercial banks differ from investment banks. Commercial banks usually deal with individuals and small companies. They generate revenue from interest on home mortgages and small business loans.
Investment banks take much larger risks. They deal with large companies and high-risk startups. They act as a kind of bridge between the companies and the investors.
Capital intensive industries often need debt financing to grow, the most common form being corporate bonds.
We will compare and contrast debt financing and equity financing, discussing the pros and cons from the standpoint of the corporation and from that of the investor.
What you’ll learn
- Define capital markets
- Describe government securities
- Explain what corporate securities are
- Describe the role exchanges play
- Explain the concept of market efficiency
- List and describe security markets regulations
- Describe the role of investment bankers
- Compare public and private financing
- Explain what long term debt financing is
- Describe bond prices, yields, and bond ratings and how they are used in decision making
- Basic understanding of corporate finance concepts
Who this course is for:
- Business students
- Business professionals