Franchise, primary market" and "secondary markets"

Résumé du document

A franchise gives the right to the franchisee to operate a business as if it were part of a chain of other stores, while it is owned individually. The advantages to the franchisor are a fast and well controlled distribution of his product, the fact that he does not have to care for constructing and operating its own outlet, a bigger amount of capital for the expansion of production and for advertising, the maintenance of product and quality standards, and a motivated work force of franchisees.

Extraits

[...] Then the stocks go through stockbroker who buys and sells shares and other securities through market on behalf of investors. And finally the stocks are bought by an investing public. On the secondary market somebody who already has his stock and is interesting in selling is going to meet someone who is interested in buying it via the intervention of two stockbrokers, one of them representing the buyer and the other representing the seller, the two of them facilitating transactions between both parties. [...]

[...] Franchise, primary market” and “secondary markets” Explain the concept of a franchise and its advantages and disadvantages to both the franchisor and the franchisee Franchise is a contractual agreement which gives the franchisee the right to exploit the business model of the franchisor. Franchise gives the right to the franchisee to operate a business as if it were part of a chain of other stores, while it is owned individually To the franchisor the advantages are a fast and well controlled distribution of its product, the fact that he doesn't have to care for constructing and operating its own outlet, a bigger amount of capital for the expansion of production and for advertising, the maintenance of product and quality standards, and a motivated work force of franchisees. [...]

[...] To the franchisee the disadvantages are the fact that the franchisor keeps a lot of control over the activities of the franchisee and the fact that the franchisor can open new competing franchises in the same area. What is the difference between the “primary market” and the “secondary markets” when it comes to stocks? The primary market presents some companies who need money and who decide to go public and who issue stocks and some investors who can buy some of them on the same market. The issuing companies are assisted by be investment banking firm that help them selling new issues of stocks and doing their forecast. [...]