Introduction to Security Industry

Introduction to Security Industry

Introduction to securities industries
The Investment World
The People

• Issuers
• Investors
• Financial Industry Professionals

The Major Products

• Traditional
• Secondary


• The Basic Processes

• Raising Capital

• Choosing the Investment Banker
• The Syndicate

• Full Disclosure

• The Cooling-Off Period

• Distributing the Security

After completing this module, you'll be able to:

• Gain a basic understanding of the investment world and the Securities Industry

• Understand the role of Primary and Secondary Markets

• Understand the process of a Public Offering

People: The Issuers
Alright, now here's where I'd like to come in. I'm Harry Allen, I'll be telling you about the way things work in the real world.
You got your IBMs, you got your mom-'n-pop shops. But all corporations need capital to replace plants and equipment, launch new business ventures, and bridge gaps in their cash flow.
Governments also need capital for replacing buildings and equipment, for building roads and bridges, and for sustaining government operations until expected revenues materialize.
1. Corporations need capital for
o Replacing plants/equipments
o Launching new business ventures
o Bridging a cash flow gap
2. Govt need capital for
o Replacing plants/equipments
• Repairing roads and building
• Sustaining operations until expected Revenue materialize
Individual investors are interested in the securities industry for a variety of reasons: the author whose earnings vary from year to year, and who needs a steady flow of investment income; the couple who want to establish a fund for their children's college education; the professional who is doing well now and is willing to put some earnings in high—risk, high—gain investments; and the couple who just sold a car and need to "park" their...

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