. CORPORATESOURCESANDUSESOFFUNDS A. 3GeneralSourcesofFunds: 1. Internally-generatedcash 2. Short-termexternalfunds 3. Long-termexternalfunds B. FormsofSecurities 1. Equity 2. Debt:themostpreferredformCORPORATESOURCESANDUSESOFFUNDSC. DebtInstrumentsUsed 1. CommercialBankLoans 2. Bonds a. Publiclyissued b. PrivatelyissuedCORPORATESOURCESANDUSESOFFUNDSD. 1. Securitization : replacingbankloanswith securitiesissuedinpublic markets. b. esscosts dueto 1.) Technologicalimprovements 2.) GlobalizationCORPORATESOURCESANDUSESOFFUNDSE . CorporateGovernance differencesexistandfallintotwo general categories: 1. Anglo-Saxon(AS)Model 2. ContinentalEuropeanand Japanese(CEJ)Model -example:keiretsusTheSonyKeiretsu: -hasledto 1. petition: 2. RegulatoryarbitrageII. NATIONALCAPITALMARKETASINTERNATIONALCENTERSA. PrincipalFunctionsofFinancialCenters 1. Totransferpurchasingpower 2. ToallocatefundsbetweensaversandborrowersNATIONALCAPITALMARKETASINTERNATIONALCENTERSB. InternationalFinancialMarket 1. Mostimportant: a. London b. NewYork c. Tokyo 2. OtherCentersforIntermediaries a. Singapore b. HongKong c. financialcenter a. politicalstability b. minimalgovernment interventions c. legalinfrastructure d. financialinfrastructure
