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20-1. LESSON. GOALS. FINANCING GLOBAL BUSINESS OPERATIONS. Describe the flow of funds for international businesses. Identify types of global financial institutions. International Flow of Funds. Sources of funds Equity capital Debt capital Uses of funds Current expenses Long-term costs.
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20-1 LESSON GOALS FINANCING GLOBAL BUSINESS OPERATIONS Describe the flow of funds for international businesses. Identify types of global financial institutions.
International Flow of Funds • Sources of funds • Equity capital • Debt capital • Uses of funds • Current expenses • Long-term costs
Global Financial Institutions • Deposit-type financial institutions • Commercial banks • Savings and loan associations • Credit unions • Other types of financial institutions • Mutual fund • Life insurance company
20-2 LESSON GOALS GLOBAL FINANCIAL MARKETS Describe how and where stocks are bought and sold. Describe factors that affect stock prices.
Investor who wants to buy stock contacts a stockbroker or uses an online service. A Stock Market Transaction Investor who wants to sell stock contacts a stockbroker or an online service. The broker contacts a representative on the trading floor of the stock exchange or offers the shares online. The broker contacts a representative on the trading floor of the stock exchange or seeks the shares online. Broker representatives on trading floor negotiate price for the stock being sold. Broker representatives on trading floor negotiate price for the stock being sold.
20-3 LESSON GOALS INTERNATIONAL FINANCIAL MARKETS Describe the different kinds of bonds and how investors earn money from bonds. Describe the role of other global financial markets.
The Bond Market • Corporate bonds • Government bonds • Federal government bonds • State and local government bonds
Other Financial Markets • The over-the-counter (OTC) market • Foreign exchange market • Futures market
20-4 LESSON GOALS ANALYZING INTERNATIONAL INVESTMENTS Describe the two major goals of investors. Analyze international investment opportunities. Identify major sources of investment information.
Current income Dividends from stock Savings certificates Corporate bonds Rental property Long-term growth Growth stocks Raw land Gold, silver Coins, stamps Arts, antiques Investment Goals
Global Investment Opportunities • Identifying potential investments • Evaluating investment opportunities • Rate of return • Liquidity • Taxes • Safety
Investment Information Sources • News media • Internet • Financial experts • Investment information services