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9-2 The Securities Market [CH 9

Chapter Overview
When most think of investments they think of the Securities Market, and will have
in mind Wall Street, The New York Stock Exchange, or the NASDAQ. When listening
to the stock report commentators reference the Dow Jones Average, the S&P and the
NASDAQ. Common thinking is that these markets are merely exchange houses for
stocks and bonds for wealthy investors. In reality these represent capitalism at its best.
This is where the “little guy” can have his money working for him. Yes, he does not
have to quit his job; he works hard, and saves, and then invests in American industry

and businesses and as he works, he has his savings work for him too; this is also where
pension funds work.
Industry looks at the services of Wall Street as an additional means of financing
securities business endeavors. Remember that there are two sources of funding for long term
Stocks and bonds
representing obligations of financial needs in business, equity capital and debt capital. Equity capital is where the
the issuer to provide original owners of a business reach into their savings and put those dollars to work in
purchasers an expected or their business; or they sell a portion of their business through stock offerings. Equity
stated return on capital will take the form of stocks—shares of ownership in the corporation. Debt
investments.
capital is borrowed money. Long‑term debt capital exists in the form of corporate
primary market bonds, U.S. government bonds, and municipal bonds. Stocks and bonds are commonly
New issues of securities referred to as securities, and both represent obligations on the part of their issuers to
sold publicly for the first provide an expected or stated return on the funds invested or loaned.
time.
Stocks and bonds are bought and sold in two marketplaces: the primary and
secondary market secondary markets. In the primary market, securities are first sold to the public. The
Sales of previously issued secondary market is the one in which previously issued securities are bought and
shares of stocks and bonds. sold.

Figure 9.1 “Tombstone” Announcements of Stock and Bond Offerings

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these Securities.
The offer is made only by the Prospectus
New Issue November 24, 2024 $1,250,000,000

The Albertsons Co.

$625,000,000

8.9% Senior Subordinated Debentures Due 2024
1,000,000 Shares Price 100%

Common Stock Plus accrued interest, if any, from 12 January 2018

$625,000,000
Price $9 Per Share 10.75% Subordinated Debentures Due 2018

Price 100%

Copies of the Prospectus may be obtained in any State from only such of Plus accrued interest, if any, from 12 January 2018
the undersigned as may legally offer these Securities in compliance with
the securities laws of such state

Charles Schwab & Co., Inc. Upon request, a copy of the Prospectus describing these securities and the
business of the Company may be obtained within any State from the
Bear, Sterns & Co. Inc. Alex, Brown & Sons Dillon, Read & Co. Inc. Undersigned where they may legally distribute it within such State. The securities
are offered only by means of the Prospectus, and this announcement is neither
an offer to sell nor a solicitation of any offer to buy.
Incorporated
Donaldson, Lufkin & Jenrette Hambrect & Quist E.F. Hutton & Company Inc.
Incorporated
Securities
Corporation
Kidder, Peabody & Co. Merrill Lynch Capital Markets Montgomery Securities Goldman, Sachs & Co.
Incorporated
L.F. Rothschild & Co. Wertheim Schroder & Co. Dean Witter Capital markets January 12, 2009

Incorporated
Incorporated
First Analysis Securities Corporation

Source: Courtesy of Clean Harbors & Albertsons.
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