the financial market
no way a bonds or shares to raise cash
actually finance are their operations or
to finance a huge capital projects now Crist
I also said that they could by different investments from the financial market
place
in the form %uh shares or bonds also and we're gonna be lookin
at that different market place's in which we can get these
products run so there are two different markets
I within the financial market and they actually are
the money markets and the capital markets and they
do you make up the financial markets as wine
market and you'll see the difference between these two they each have
I separate products would separate maturities
and they have different attributes in each of these markets just remember that
use to you markets are both together
with Ben the financial markets which will see and a second so
whats ur a quick money markets and money markets only
carry that then they only carry debts
that has a maturity a bless
ban whiny year so different kinda products
I bet you might see with the money markets early treasury bills
and Treasury bills are carried
with Encana other also carry with them the US
owner sold at a discount basis so they might be sold out like something like
on 99 I
points by percent I beast value
and the baseball you say a hundred dollars per Treasury bill
the Treasury build our government's dats that's of course
you can buy and invest in a new case you need here kinda
heart cash so this is kinda
for working cash in a risk-free kinda bad said he'd be dead
a very very small amount of the entrez since you can purchase
used upper 1mon per three months or six months n
either their army longer maturities but of course remember that money markets
are for less than one year maturities and another table
product is commercial he per
you may not I've heard this one
a commercial paper with this it'd thats our corporation
we can actually you can actually sell
some notes Siro to you are
investors if our debts is really high
R-rated and we can solve this commercial paper
for a small amount to be in trusts and both actually have to your
I return any amount that reboard plus the entrance
so it's kinda like a Treasury bill except that
oh we're of green the
dats or another corporation is offering that that's a commercial paper
ass you always do writ corporations and of course
be be late but I'm you go anywhere from one to three hundred
and 64 days because we always have to be less than one year
and the one of the last ones this is an all out
down of course but I'm just listening three main ones is the certificates
a deposit music on a CD and a CD
can be obtained of Premier Bank or your financial institution
where you can get them indifferent blanks
which are also in or not like I'm on or three months
works six months and they have a small amount and trust usually greater than
Treasury Building commercial paper so
AST research to get the deposit are 10
be better-paying and trusts money-market
instrument so these are all dat remember that money market
contains all thats and now the capital markets
are made up %uh dads what they're also made up
I love equity richer share is so
the thing is though the deaths on the capital markets
is one-year what's so anything
that is less than one year maturity belongs in the money markets capital
markets only contain
one year plus on maturity or late but area to burning that
for one year plus so type instruments we can kinda see
the menus are our shares of course
shares but corporations we can either issue shares the region percent sure its
parlor corporation
I we have we have bonds
we can issue bonds her bonds from her cell
I would we can also purchase bond I've been investments me wants you
and bass sum up our our cash
a within different types events he's maybe
me wants you invest in another corporation
you can get other corporate bonds are you can get municipal bonds
you can get provincial or or state bonds that you're in the US
you can also by gets
federal bonds
and of course remember that these are all for
I link the period they are all the number one year
up plus because course capital markets
it is a longer period or longer holding periods battered in money markets
ants and you can also have her heard
referred bonds with Dan the capital
market so I preferred bonds essentially give you
preference to entrust I B four
or they they contain certain rates like you would a greater part is being rates
I B four common shareholders which will talk about its
I in another Kitaro probably but user some the instrument you'll find
in the capital markets always remember that the capital markets in the money
markets
are both with in a
the financial markets so what's the some examples of what we could do
i with these you different investments well
some things we could do are about to be Cana
what's a I the corporation may be has
maybe as one million dollars and we need bats
within one month so what we can do is begin that's that's
within money-market
and we can purchase a one month T-bill
if we want something that is very low risk
and very on that we're going to get our money back
I very soon so that we keep our money liquid and
able to pay off any short term obligations or create one million
dollars in one month core capital project it'll be credo
because hugo's always receive our money back with a little bit
%uh interests so that's much for us in it fast enough course
you can also do something why a
for example if we need some money what we can do is be can
weekend issue some commercial paper
so commercial paper issued by a corporation
and you can receive cash in return
i commercial paper is unsecured debt because
we have such a high credit rating
and will receive cash in we'll just have to pay them back a small
amounts a entrust and a very short amount of time like I said
it can be many be anywhere between one and 364 days
I so that's commercial paper so loser different things we can do with the
money markets began
neither purchased he bowls began saw a commercial paper
up for cash if we needed I cash
for operating operating expenses or maybe
for a short term capital project that we needed money for really quickly
and for capital markets well we can see capital markets
is that's if thats we could have
we get have by cash coming into our corporation because
maybe we need to finance a capital project like
it said before or and then of course
I reedy yes you re in Bama new shares so maybe you
we need maybe we need $25 million dollars
and we would have to you issue I don't know a burger ever shares are trading at
one dollar
use then we have their issue 20 by
million a shares I
to the public of course and I would raise the cash
or we can do something else Lake
you can purchase you can purchase maybe
bonds in the in the capital markets daughter
long-term so what they are corporation wants you invest
and bond so what will you do is beer ad spend I don't know any word maybe like
we have twenty million dollars
and roll and best this incorporates
bonds to receive interest in the long term because we have nothing to do with
their
cash for incense and of course will receive
a certain number bonds
plus but fixed amount %uh entrust
able I may be semi-annually or annually
I told the parents on what the coupon actually its size so
Boozer different types of investments we can have been different
a situation that candy brought on by using the capital markets
or the money markets just always remember that there are different
products that we can purchase
are within the capital markets and the money markets and always remember money
markets
less than one year capital markets greater than one year
and they include equity rather than just debts
in money market so I will be talking about actually primary markets and
secondary markets in the next tutorial. All see you guys, thanks for visit..
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