Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?

The managers cannot ignore the secondary market, as the presence of the company on the secondary market makes the company more attractive to investors. The investors are given the option of selling the stock at the secondary market, should it turn to be unprofitable or should they need their money back quickly.

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Academic.Tips. (2022) 'Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market'. 24 November.

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Academic.Tips. (2022, November 24). Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market? https://academic.tips/question/firms-raise-capital-from-investors-by-issuing-shares-in-the-primary-markets-does-this-imply-that-corporate-financial-managers-can-ignore-trading-of-previously-issued-shares-in-the-secondary-market/

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Academic.Tips. 2022. "Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?" November 24, 2022. https://academic.tips/question/firms-raise-capital-from-investors-by-issuing-shares-in-the-primary-markets-does-this-imply-that-corporate-financial-managers-can-ignore-trading-of-previously-issued-shares-in-the-secondary-market/.

1. Academic.Tips. "Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?" November 24, 2022. https://academic.tips/question/firms-raise-capital-from-investors-by-issuing-shares-in-the-primary-markets-does-this-imply-that-corporate-financial-managers-can-ignore-trading-of-previously-issued-shares-in-the-secondary-market/.


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Academic.Tips. "Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?" November 24, 2022. https://academic.tips/question/firms-raise-capital-from-investors-by-issuing-shares-in-the-primary-markets-does-this-imply-that-corporate-financial-managers-can-ignore-trading-of-previously-issued-shares-in-the-secondary-market/.

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"Firms raise capital from investors by issuing shares in the primary markets. Does this imply that corporate financial managers can ignore trading of previously issued shares in the secondary market?" Academic.Tips, 24 Nov. 2022, academic.tips/question/firms-raise-capital-from-investors-by-issuing-shares-in-the-primary-markets-does-this-imply-that-corporate-financial-managers-can-ignore-trading-of-previously-issued-shares-in-the-secondary-market/.

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