Macro Economics and Equite securities

aniket.valsangkar
Good Student
Posts: 10
Joined: Thu May 15, 2014 12:55 pm

Macro Economics and Equite securities

Postby aniket.valsangkar » Thu May 15, 2014 1:03 pm

1) what is the link between deficit financing and increase in interest rates for a country
2)How to buy the shares of private company? Is an IPO the only way to buy shares for common public
3)what will happen to the coupen rate if i convert the convertible bond into shares
3.1)"The advantage for companies of issuing convertible bonds is that, if the bonds are converted to stocks, companies' debt vanishes" - hpw dpes this happen
4)what is the meaning of "if the conversion value of convertible bond is lower the bond may trade at a price close to the straight bond"
5)repurchase of shares by a company is done in primary or secondary market

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Macro Economics and Equite securities

Postby edupristine » Fri May 16, 2014 9:56 am

1.) Normally deficit financing is in Fiscal markets & interest rates are in Monetary markets. Hence, an indirect link exists. When deficit financing increases the interest rates decreases.
2.) Shares of private company are normally purchased via venture capitalist. IPO is only for the the first time.
3.) You won't get any coupon after that, instead if there is any dividend for equity issued you are eligible for those dividends.
3.1) A company issues convertible bonds because, if in case of turmoil the companies can avoid annual coupon payments by converting them to equities at the specified conversion ration. After converting them to equity, paying dividends is a company's decision.
4.) Insufficient information, we need an example or source for explanation.
5.) Repurchase is done in the secondary market.

aniket.valsangkar
Good Student
Posts: 10
Joined: Thu May 15, 2014 12:55 pm

Macro Economics and Equite securities

Postby aniket.valsangkar » Mon May 19, 2014 2:06 am

1) What is the basic difference between primary and secondary market? Ca you give an example
2)if deficit financing increases the interest rates increases....but what s the logic behind this
3)can u elaborate on "ipo is only for the 1st time"
4)"if the conversion value of convertible bond is lower the bond may trade at a price close to the straight bond" this is regarding the conversion value of the convertible bonds....after these bonds are converted to stocs....


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