This is a case analysis relative to Financial Management. The case is a formal paper 5 pages long (double spaced with ‘Time New Romans Font 12` excluding title page and references). The paper should be formatted using APA style ( http://owl.english.purdue.edu/owl/resource/560/01/
Jagdambay Exports ( http://www.jagdambayexports.com/ ),
a manufacturer and exporter of Baby Wears Garments, is considering ‘‘going public`` to raise funds to expand in USA. The Chief Financial Officer (CFO) of Jagdambay Exports has approached the investment banking firm at which you work seeking help with its decision. Your
boss asked you to explain the nature of the U.S. financial markets and the process of issuing equity to the CFO of Jagdambay Exports.
To help with this task, your boss has asked you to explain some things regarding the U.S. financial system to CFO of Jagdambay Exports:
Explain the components of a financial market and its relevance to Jagdambay Exports. Be explicit and explain to the CFO how financial markets differ from markets for physical assets and why that difference matters to Jagdambay Exports.
Explain the relevance of money markets and capital markets for
Analyze Jagdambay exports and advise how the CFO should consider the primary market and secondary market in the expected transaction. Base your advice, in part, upon the fact
that the CFO informed of two things:
Jagdambay exports decided to issue additional common stock, and
An investor purchased 1,000 shares of this common stock from the underwriter (Merrill Lynch).
Advise the CFO on three primary ways in which capital may be transferred between savers and borrowers in Jagdambay Exports. Explain the advantages and disadvantages of each
within the organization.
Advise the CFO on securities trading on physical exchanges or over-the-counter market. Base your analysis upon what you know about Jagdambay Exports and discuss why you advise
one method over the other.
Summarize the U.S. financial system advice to the CFO and provide a timeline of expected outcomes based on your advice. (This should be no more than a paragraph or two).
Finally, write 2 -3 sentences about what you learned regarding the U.S. financial system based upon this assignment.
BUSINESS AND MARKETING Name: Course: Institution: Tutor: Date: Introduction A financial market is a platform whereby trading of securities, bonds, equities, currencies, bonds, as well as derivatives occurs (Marc, 2009). A financial market is that which is has transparent pricing, as well as basic regulations that are related to costs, trading, and fees as well (Pilbeam, 2010). This also covers the market forces which are related to determining the prices that the securities trade. This paper conducts an analysis of Jagdambay Exports, an Indian company that manufactures and exports baby wear garments. The paper hypothesizes the USA financial market components and the entry and expansion of Jagdambay Exports into the USA market. Analysis A financial market has various components. Amongst them include capital markets; this relates to individuals trading in financial securities. This involves both primary and secondary markets. For a company, to raise money through the sale of securities, there is the sale of stocks and bond which are in the company`s name (Pilbeam, 2010). The money market is another segment of financial markets. This kind of market is used by many participants, and it is a means for them to borrow and lend money for a short term. It is characterized by high liquidity, and trading of short maturities (Dodd, 2012). T