P4小册子-15.pdfVIP

15: The treasury function in multinationals Topic List The treasury function of a multinational company should deal with short-term decisions in a way that is consistent with the long-term management objective of maximising shareholder value. Markets Instruments The treasury function deals with the management of short-term assets of a company and its risk exposure. You should understand the principal money market instruments that are available. Markets Instruments Financial markets Primary and secondary markets Capital markets Primary market: a financial market in which new are markets in which the securities that are traded issues are sold by issuers to initial buyers have long maturities, ie represent long-term obligations for the issuer. Securities that trade in Secondary market: a market in which securities capital markets include shares and bonds. that have already been issued can be bought and sold Secondary markets can be organised as Money markets exchanges or over the counter (OTC) – where buyers and sellers transact with each other are markets in which the securities traded have through individual negotiation. short maturities, less than a year, and repaym