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Business finance - Coggle Diagram

- - - - Commarcial, retail or clearing banks
    - - Investment bank
  - - - Base rate set by its Monetary Policy Committee (MPC)
      - aim of monetary stability
      - via Interest rate, London Inter Bank Offer rate (LIBOR)
    - - via Financial Policy Committee (FPC)
        
        action, remove systemic risk in financial system
        
        Secondary objective: support Government
  - - - Prudential Regulation Authority (PRA)
        Part of BoE
        
        Prudential regulation
        
        Supervision of banks, building,
        societies, credit unions,
        insurers and investment firms
        
        Spot problem, focus potential harm to firm
        
        secure insurer
        
        Protect policyholder
      - Financial Conduct Authority (FCA)
        
        Independent body
        
        Promote effective competition
        
        Ensure market function well
        
        Regulate the conduct of all financial service firm
        
        Prevent market abuse
        
        ensure consumers get a fair deal from financial firms
        
        prudential regulate and supervision of firm which are not supervised by the PRA such as asset managers and independent financial advisers
  - - - Contingent Reimbursement Model (CRM)
        
        Protection from authorised push payment (APP) scams
        
        Forgeries (copying money)
- - - - Aggressive business: more short-term
      - Average business
        
        Permanent CA financed by long- term
      - Defensive business little short-term finance
- - - - issue cost (many are fixed)
      - Shareholder reactions
      - Control
      - Unlisted companies: unsufficient fund
  - - - First comes onto the market
      - Institutional investors
      - Contacted by the issuing house
      - (+) low cost
      - (-): limited spread of investors
    - - IPO/ offer for sale
        
        via investment bank
        (issuing house)
      - Direct offer
        
        to general public
    - - underwriting
        
        guarantee purchase
        
        Fixed fee 1-2%
      - Offer for sale by tender
        
        highest price
        
        Lower price -> proportion
- - - - buy-back
      - Flotation
      - Sold to another company