FINANCE 661 - Raising Capital: Financial Instruments, Institutions and Strategy
This course covers financial markets, instruments, and institutions, with the primary focus being on the capital raising and financing activities of firms at different stages in their life cycle. One of the critical activities a company must do well, to succeed is the raising of capital. The when, where, and how of raising capital is the focus of the course. The perspective will typically be that of a firm wishing to raise capital, though we will, quite often, also examine financing transactions from the viewpoint of the participating financial intermediary. We analyze financing choices for younger firms, for which there exists little or no security price information, and then examine capital raising issues relevant to larger, listed firms.
Topics to be covered in this course include the role of financial intermediaries - such as commercial banks and investment banks - in the capital raising process, the decision to go public, mechanism and pricing of initial public offerings, role of investment banks in IPOs, high-tech firm financing, privatization, bank debt, private placements, public debt markets, commercial paper and junk bond markets.