Secure Bonds to Raise Capital

Related BrainMass Solutions

• Capital raising for an organization

  Discuss how an organization uses bonds to raise capital. How does this benefit an organization? How can it be harmful? An organization can raise capital by using bonds as to sell their shares to avoid ownership of the business.

• Primary and Secondary Market Analysis for Raising Capital

  What is the capital market? The capital market is a place where companies and government raise money by selling bonds, stocks, and securities that mature.

• Raising Funds by Borrowing or Fundraising

  stock as shareholders hedge away their losses enabling the company to raise capital.

• Benefits for an organization to raise capital by stocks

  What are the benefits for an organization to raise capital by issuing stocks as opposed to issuing bonds?

• Given the current state of the economy and our financial mar

  The owners of the newly acquired stock then become shareholders in the corporation, respective to their stock purchase. It is definitely wiser for a company to raise capital through equity today, as opposed to raising capital through debt.

• Stock Flipping Investments

  They are usually long term loans taken by companies to secure capital and repayed at a fixed rate of interest.

• Capital transfer: suppliers and users of capital

  Lending with bonds can be structured with some equity features (convertible bonds to common stock) while retaining the repayment terms of debt.

• Transfers of capital from suppliers to recipients

  Lending with bonds can be structured with some equity features (convertible bonds to common stock) while retaining the repayment terms of debt.

• Why would companies choose to raise money with bonds vs. notes?

  The expert determines why would companies choose to raise money with bonds versus notes.