金融英语课件李丽 马跃ISBN 9787810788175 PPTchapter_16.ppt

《金融英语课件李丽 马跃ISBN 9787810788175 PPTchapter_16.ppt》由会员上传分享，免费在线阅读，更多相关内容在教育资源-天天文库。

1、Chapter16BusinessintheFinancialSystemThemajorityoffundsdrawnonbybusinessestomeettheirworkingcapitalandinvestmentneedscomenotfromthefinancialmarketsbutfrominsidetheindividualbusiness.Inmostyears,morethanhalfofbusinesscapitalrequirementsaresuppliedbyearningsandnon-cashdepreci

2、ationexpenses—internalcashflow.However,roughlyaquartertoahalfofbusinessinvestmentneedsinrecentyearshavebeenmetbysellingsecuritiesinthefinancialmarkets.Thefinancialsystemisabackstopfortheoperationsofbusinessesforthoseperiodswheninternallygeneratedcashfailstoincreasefastenoug

3、htosupportthegrowthofsales.2021/8/42Chapter16BusinessintheFinancialSystem1.FactorsAffectingBusinessActivityintheMoneyandCapitalMarketsManyfactorsaffecttheextenttowhichbusinessesdrawonthemoneyandcapitalmarketsforexternalfunds.Theyare:conditionoftheeconomy,creditavailability

4、andinterestrates,levelandexpectedgrowthofinternallygeneratedfunds.2021/8/43Chapter16BusinessintheFinancialSystemAboomingeconomygeneratesrapidlygrowingsales,encouragingbusinesspeopletoborrowinordertoexpandinventoriesandtoissuestocksandbondsinordertopurchasenewplantandequipme

5、nt.Incontrast,asaggingeconomynormallyisaccompaniedbydecliningsalesandareductionininventorypurchaseandlong-terminvestment.2021/8/44Chapter16BusinessintheFinancialSystemRisinginterestratesthattypicallyaccompanyaperiodofeconomicprosperityorinflationeventuallychokeoffbusinessbo

6、rrowingandspendingplansduetotheincreasingcostofcarryinginventories,floatingnewsecurities,andrenewingcreditlines.Fallinginterestrates,ontheotherhand,canstimulatebusinessborrowingandspending,leadingtoarestockingofinventoriesandtoanexpansionoflong-terminvestmentfinancedbybonds

7、,stocks,anddirectloans.2021/8/45Chapter16BusinessintheFinancialSystemThefinancialmarketsarelargelyasupplementalfundssourceformostbusinesses,drawnupontobackstopinternalcashflowswhencreditavailabilityandeconomicconditionsarefavorableandwheninternallygeneratedfundsoftenarefoll

8、owedbyadearthofnewsecurityofferingsandsignificantpay-downsofoutstandingloansthenex