1980s Affecting Corporate Finance Article Review

Pages: 4 (1658 words)  ·  Bibliography Sources: 2  ·  File: .docx  ·  Topic: Economics

SAMPLE EXCERPT . . .
Gongloff (2010) tried to predict the future of investors' desire for corporate debt by mentioning that a double-dip recession would imply more defaults and scare investors away from corporate bonds. By contrast, economic recovery could lead to higher interest rates and an invigorated stock market, luring investors back into the purchase of stocks and weakening demand for bonds. The latter scenario seems more likely. Despite the huge exodus of money from stocks since the summer of 2010, it may be a good idea to own stocks. Corporate earnings are setting record levels, due to increases in productivity and businesses in foreign markets, and corporate profits increase stock prices. Yet for institutional investors, which have superseded individual investors in stock markets, the only choice is not bonds vs. stocks in American corporations. There is the option of investing in stocks of foreign companies. For example, American investors have been heavily involved in Korean stocks.

Buy full Download Microsoft Word File paper
for $19.77
In sum, developments in the 1980s like deregulation and internationalization motivated corporations to bypass commercial banks and seek financing in capital markets. This was true mainly for large corporations with good credit ratings. But even smaller firms entered the financial markets in a significant way via the issuing of junk bonds. The predominance of financial markets has continued up to 2010 with no strong indications of abating. Today's low interest rates and the hampered stock market have strengthened the old trend toward financial markets as a source of external financing for corporations. Yet some analysts feel that the huge supply of bonds will eventually saturate the market. Moreover, high levels of profits by many American corporations and expected economic recovery in the U.S. are signs that the bond market will eventually subside as investment in stocks becomes a more desirable option, at least in the medium term.

Financial Markets and Corporate Finance

Reference

Gongloff, M.(2010, September 8). Blue-Chip Borrowers Issue Debt in Droves Wall Street

Article Review on 1980s Affecting Corporate Finance From Assignment

Journal (Online). Retrieved from http://proquest.umi.com.ezproxy.fiu.edu/pqdweb?index=0&did=2133668831&SrchMode=2&sid=2&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1290691705&clientId=20175 [END OF PREVIEW] . . . READ MORE

Two Ordering Options:

?
Which Option Should I Choose?
1.  Buy full paper (4 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions!
Chat with the writer 24/7.

Financial Planning Research Paper


Corporate Universities Investigation of Their Development Internationally in the Field Sector of Tourism Term Paper


Self-Serving Actions That Management Essay


Comprehensive Financial Analysis of Supervalu, Inc Research Paper


Corporate Social Responsibility in High Technology Companies Thesis


View 200+ other related papers  >>

How to Cite "1980s Affecting Corporate Finance" Article Review in a Bibliography:

APA Style

1980s Affecting Corporate Finance.  (2010, November 25).  Retrieved April 3, 2020, from https://www.essaytown.com/subjects/paper/1980s-affecting-corporate-finance/7199130

MLA Format

"1980s Affecting Corporate Finance."  25 November 2010.  Web.  3 April 2020. <https://www.essaytown.com/subjects/paper/1980s-affecting-corporate-finance/7199130>.

Chicago Style

"1980s Affecting Corporate Finance."  Essaytown.com.  November 25, 2010.  Accessed April 3, 2020.
https://www.essaytown.com/subjects/paper/1980s-affecting-corporate-finance/7199130.