leida

aedler
carlos
4. what are the players in "corporate finance" and how these players interact in
running the "financial market"?
answers:
The players in the corporate finance are:
1. COMPANY -
2. INVESTORS INTERMEDIARIES
3. EXCHANGES, REGULATORS, AND INDUSTRY ASSOCIATION
4. ANCILLIARY PLAYERS
5. EVOLVING MARKET, HEDGE FUNDS AND PRIVATE EQUITY AND DERIVATIVES
6. M&A PLAYERS
The primary role players in corporate finance are the ones mentioned above. The
very foundation and the primary player in the company. It is a basic tennet in c
orporate finance that companies as main driver of economic growth requires capit
alization. This capitalization is then sourced out from investments from stockho
lders thru initial capitalization. Due however to variety of reasons the company
needs additional capital for expansion and exploration of their respective busi
ness endeavors , or simply to reverse bankruptcy. This capitals either come from
the issuance of equity to public offerings or non-public offerings usually regu
lated by Exchanges, Regulators or thru compromises Industry Associations. Other
companies bring in more funds thru investors, banks and other intermediaries who
has the ,necessary liquidity for a loan agreement for the company.Other lending
institution are in a form of Hedgefunds , individual investors, institutional i
nvestors, persons funds and mutual funds.The trend nowadays, however for the com
panies under the brink of insolvency or for expansion purposes to either merge o
r consolidate with other top players. Ancilliary players such as accountants, fi
nancial analyst and lawyers do the dirty work of endless papers and compromises
beyond the limbo of nothingness for this company.