Abstract
Financial security markets form part of financial markets, which include equity markets, debt markets, and others (hybrid security markets and derivative markets). In ► Chap. 2, the linkage between a firm and financial markets was discussed. Overall, these markets facilitate business transactions, asset fair pricing, and risk sharing. This chapter focuses on stocks and bonds by explaining their implications in valuation. Jointly, they play a significant role in valuation because they provide opportunities for raising capital and making investments. Moreover, here, these markets are used to reflect on a firm’s capital structure, which represents ownership (stocks) and leverage (debts). Moreover, the key determinants of security prices and their implications in valuation are discussed.
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Kulwizira Lukanima, B. (2023). Security Markets and Valuation. In: Corporate Valuation. Classroom Companion: Business. Springer, Cham. https://doi.org/10.1007/978-3-031-28267-6_4
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