EXPLAIN THE RELEVANCE OF MONEY MARKETS AND CAPITAL MARKETS FOR JAGDAMBAY EXPORTS

EXPLAIN THE RELEVANCE OF MONEY MARKETS AND CAPITAL MARKETS FOR JAGDAMBAY EXPORTS
November 17, 2019 Off All,

Description

This is a case analysis relative to Financial Management. The case is a formal paper 5 to 8 pages long (double spaced with ‘Time New Romans Font 12’ excluding title page and references). The paper should be formatted using APA style(http://owl.english.purdue.edu/owl/resource/560/01/). Jagdambay Exports (http://www.jagdambayexports.com/), a manufacturer and exporter of Baby Wears Garments, is considering ‘‘going public’’ to raise funds to expand in USA. The Chief Financial Officer (CFO) of Jagdambay Exports has approached the investment banking firm at which you work seeking help with its decision. Your boss asked you to explain the nature of the U.S. financial markets and the process of issuing equity to the CFO of Jagdambay Exports. To help with this task, your boss has asked you to explain some things regarding the U.S. financial system to CFO of Jagdambay Exports: 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.

1. Explain the relevance of money markets and capital markets for Jagdambay Exports. 1 / 3 1. 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). 1. 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. 1. 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. 1. Summarize the U.S. financial system advice to the CFO and provide a timeline of expected outcomes based on your advice. (This should be no more than a paragraph or two). 1. Finally, write 2 -3 sentences about what you learned reg