Financial Market Case Study

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MBA 621 Case Assignment

1. The financial market is a mechanism of redistribution of capital between lenders and borrowers with the help of intermediaries on the basis of supply and demand for capital. In reality, it is a combination of credit and financial institutions of the country, which redistribute the cash flows between the owners and borrowers. The main function of the financial market is the conversion of inactive cash into loan capital. At the same time, its main point is not only redistributing of the financial resources but also determining the direction of redistribution. The most effective application of financial resources is determined on the financial market.
The financial market is an organized or informal trading system of …show more content…

Before you go to the stock exchange, you must take a leading position in the industry or market segment. It would not be so difficult for the company that provides baby clothes on high quality. Also, the company must prove that it is configured for long-term performance. At this, the availability of long-term licenses, own brands and technologies, which are difficult to copy by the competitors, will help.
Of course, the yield on the IPO is a complex and long procedure. One of the main reasons for failure in the initial public offering of shares is short period of time, which adversely affects the quality of preparation. Therefore, even if you are planning to go to IPO only in the distant future, the corporate governance principles of transformation must begin well in advance.

7. The output of Indian companies on US stock markets – primarily on the NASDAQ and OTC Bulletin Board – and their subsequent financing in the form of additional shares are becoming one of the most effective ways of raising capital. The advantages of this solution are obvious. First of all, this is the access to huge financial resources, which are larger than stock markets in India, the valuation of the company 's shares and unattainable liquid in this

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