Why might a corporation seek to raise funds outside its local capital market? Answer Should not...

Why might a corporation seek to raise funds outside its local capital market? Answer Should not be less than 500 words.

Solutions

Expert Solution

There are various sources from where a company can raise funds. These are essential for the firm to grow and have a good position. For the growth purposes they need funds continuously. First, they look inside the firm that is from retained earnings, etc. If they have utilised the retained and other internal sources. Then they go for external sources. They external sources are one of the major sources from which funds can be raised such as equity and debt. After raising the funds from local market they go overseas capital market. Going overseas due to several reasons. The costs of raising there might be less. Cetian countries provide lucrative costs so that overseas players or companies can come and raise the funds easily. The other reason might be local firm may want to make thier presence in overseas capital market so that brand gets promoted. The company might become familiar in overseas countries as well. So, there be several reasons.

Note: I have provoded the basis reasons you can now elaborate.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Assume that a corporation needs to enter the private debt market to raise funds for plant...

Assume that a corporation needs to enter the private debt market to raise funds for plant expansion. The corporation expects debt covenants to place restrictions on the levels of its current ratio and total-liabilities-to-assets ratio. Considering the accounts that comprise these ratios, provide examples of accounting estimates, accounting judgments, and structured transactions that the lender should examine closely and explain why each is important. In replies to peers, discuss additional information the lender should consider

Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the...

Inverse mutual funds, sometimes referred to as "bear market" or "short" funds, seek to deliver the opposite of the performance of the index or category they track, and can thus be used by traders to bet against the stock market. This question is based on the following table, which shows the performance of three such funds as of August 12, 2011. Year-to-date Loss SHPIX (Short Smallcap Profund) 6% RYURX (Rydex Inverse S&P 500) 5% RYIHX (Rydex Inverse High Yield) 7%...

Why might money market mutual funds encourage risk-taking?

To preserve capital in a declining share market, a portfolio manager should: a. Shift funds from...

To preserve capital in a declining share market, a portfolio manager should: a. Shift funds from cash markets into share markets. b. Buy call options on the share index. c. Sell put options on the share index. d. Buy share index futures. e. Sell share index futures. Which of the following is a FALSE statement? a. The S&P500 is a popular benchmark for evaluating portfolio performance in the US. b. Dollar-weighted returns are appropriate for portfolio managers. c. Superior performance...

Capital markets and the ability to raise funds for corporate uses are essential to the U.S....

Capital markets and the ability to raise funds for corporate uses are essential to the U.S. economic system. For this assignment, imagine that you have $25,000 to invest in U.S. companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner. You are investing, or buying, the stock because you believe the company will make money and pay you a dividend in cash. Each share...

Why would a country seek to drive the value of its currency down? should world economic...

Why would a country seek to drive the value of its currency down? should world economic powers help developing and low-income countries achieve better standing (beyond foreign investment by firms)? Should the government support a protectionist approach to all international trade? How could they do this?

To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to...

To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $540,000 and immediately leased the building back. The lease is for a 10-year period ending December 31, 2030, at which time ownership of the building will revert to North American Courier. The building has a carrying amount of $480,000 (original cost $1,160,000). The lease requires North American to make payments of $87,882 to the insurance company each December 31. The...

What number of hours of live broadcasts should NPR raise funds for?

NPR (i.e., National Public Radio) is in the middle of its fall fundraising campaign. NPR is trying to determine the number of hours per month of live radio broadcasts (versus taped) that they should provide. The cost of providing one hour of taped broadcast is zero, while the marginal cost of an hour of live radio broadcast is 30 (in thousands). You have been asked to advise NPR in this fundraising campaign.From your research, you find that there are three...

Which of the following is a capital market security? Group of answer choices Fed funds Commercial...

Which of the following is a capital market security? Group of answer choices Fed funds Commercial paper Treasury bills Repo Preferred stock

Firms raise funds in the equity market through public oﬀerings in the primary market. After a...

Firms raise funds in the equity market through public oﬀerings in the primary market. After a share of stock is issued, then if the price of the share in the secondary market increases or decreases the ﬁrm’s ﬁnances are not directly aﬀected. Why might ﬁrms care about the price of the shares of their stocks in the secondary market even though they are not directly aﬀected by the price changes?

Subjects