This paper explains the U.S. financial system to CFO of Jagdambay Exports. I will explain the following questions. 1. Explain the components of a financial market and its relevance to Jagdambay Exports. Be explicit and explain to the CFO how financial markets differ from markets for physical assets and why that difference matters to Jagdambay Exports. 2. Explain the relevance of money markets and capital markets for Jagdambay Exports. 3. Analyze Jagdambay exports and advise how the CFO should consider the primary market and secondary market in the expected transaction. Base your advice, in part, upon the fact that the CFO informed of two things: 1. Jagdambay exports decided to issue additional common stock, and 2. An investor purchased 1,000 shares of this common stock from the underwriter (Merrill Lynch). 4. Advise the CFO on three primary ways in which capital may be transferred between savers and borrowers in Jagdambay Exports. Explain the advantages and disadvantages of each within the organization. 5. Advise the CFO on securities trading on physical exchanges or over-the-counter market. Base your analysis upon what you know about Jagdambay Exports and discuss why you advise one method over the other. The components of a financial …show more content…
The capital business sector is the business sector for securities, where organizations and the legislature can raise long haul stores. The capital business sector incorporates the stock exchange what 's more, the security market. Money related controllers, for example, the U.S. Securities and Exchange Commission, direct the capital markets in their individual nations to guarantee that financial specialists are ensured against extortion. The capital markets comprise of the essential business sector, where new issues are appropriate to financial specialists, and the optional business sector, where existing securities are exchanged. (n.d.).