Reference no: EM1336979
1. What distinguishes the internal capital market from the external capital market?
2. What important factor(s) might affect a firm's internal-external financing choice?
3. Why might firms prefer to issue new debt securities rather than new common stock?
4. How does the U.S. tax system affect a firm's financing choices?
5. What are financial markets?
6. Why will an economy suffer without a developed financial market system?
7. What distinguishes a real asset from a financial asset?
8. Can you distinguish between direct securities and indirect securities?
9. What is the difference between a savings-surplus sector and a savingsdeficit sector? Give an example of each.
10. Why cannot all sectors be savings-deficit sectors?
11. Within the financial markets, what do we mean by "private placements"?
12. What are the possible advantages and disadvantages of private placements?