INFLUENCE UNDERSTANDING OF THE FINANCIAL MARKET’S FUNCTIONING TO THE COMMERCIAL AWARENESS OF ENTERPRISES: FOREIGN EXPERIENCE
Abstract
Basic financial knowledge goes a long way when contemplating the structuring of potential investments, as well as reviewing due diligence documentation prior to an investment being made. Being a public company opens up another avenue of finance, this time on the debt side. The principal types of bank are commercial (lending), investment (securities underwriting and trading) and bundled (both). Enterprises can usually borrow more cheaply by issuing a bond than by getting a loan from a bank, because a bondholder can simply sell the bond to get its money back whereas it is trickier for a bank to sell a loan (loans aren’t designed to be bought and sold in quite the same way). An enterprise’s staff is now required to play a more prominent role in business decisions rendered by an enterprise, as well as help shape their strategy and assist the enterprise to meet its corporate objectives
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