Discuss the role of government in financial intermediation. Do you think government must be a player and a regulator in the financial markets?
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- Answer these three questions about early-stage corporate finance: Why do very small companies tend to raise money from private investors instead of through an IPO? Why do small, young companies often prefer an IPO to borrowing from a bank or issuing bonds? Who has better information about whether a small firm is likely to earn profits, a venture capitalist or a potential bondholder, and why?Why are banks more willing to lend to well-established firms?From a firms point of view, how is a bond similar to a bank loan? How are they different?
- Why can firms not just use their own profits for financial capital, with no need for outside investors?Why should a financial investor care about diversification?If you owned a small firm that had become somewhat established, but you needed a surge of financial capital to cant out a major expansion, would you prefer to raise the funds through borrowing or by issuing stock? Explain your choice.
- What are the- most common ways for start-up firms to raise financial capital?3. What are the different types or kinds of financial markets (include definition)?1.show the relationship between financial markets, instruments and financial institutions using a diagrammed or a model to reflect your understanding. Be sure to explain your model and the relationship between the parts Identify the players in the financial markets and given examples of these
- 7. What economic functions do financial intermediaries perform?4. Define Financial Intermediaries. Give two examples.1. What are two methods Doyle broadly mentioned for measuring output in the financial sector? What assumptions must be made about the opportunity costs of various participants in the market in order to derive each?