ofSecuritiesMarkets(资产定价-上海交大,蔡明超)

Lec4OrganizationandFunctioningofSecuritiesMarkets饭吃8分，获利8成2Chapter4OrganizationandFunctioningofSecuritiesMarkets•a)describethecharacteristicsofawell-functioningsecuritiesmarket;•b)competitivebids,negotiatedsales,andprivateplacementsforissuingbonds;•c)compareandcontrastthesecondarymarketsforU.S.government/municipalbonds•withthesecondarymarketsforcorporatebonds;•d)primaryandsecondarycapitalmarkets,explainhowsecondarysupportprimary,•e)distinguishbetweencallandcontinuousmarkets;•f)compareandcontrastthestructuraldifferencesamongnationalstockexchanges,regionalstockexchanges,andtheover-the-counter(OTC)markets;3Chapter4OrganizationandFunctioningofSecuritiesMarkets•g)compareandcontrastmajorcharacteristicsofexchangemarkets,including•exchangemembership,typesoforders,andmarketmakers;•h)processofsellingastockshortanddiscussaninvestor’smotivationforshort;•i)discussthetechnicalpointsaffectingshortsales;•j)describetheprocessofbuyingastockonmargin;•k)computetherateofreturnonamargintransaction;•l)definemaintenancemarginanddeterminethestockpriceofamargincall;•m)discussmajoreffectsoftheinstitutionalizationofsecuritiesmarkets.4LOSa:Describethecharacteristicsofawell-functioningsecuritiesmarket.1.Providetimelyandaccurateinformationonthepriceandvolumeofpasttransactionsandonthesupplyofanddemandforcurrentgoodsandservices.2.Provideliquidity.Liquidityrequiresmarketability,pricecontinuity,anddepth.3.Internalefficiency,whichmeansgettingthelowestpossibletransactionscost.4.Informationalorexternalefficiency,whichmeanspricesrapidlyadjusttonewinformationsothattheprevailingmarketpricereflectsallavailableinformationregardingtheasset.5LOSb:Distinguishbetweencompetitivebids,negotiatedsales,andprivateplacementsforissuingbonds•GovernmentbondissuesaresoldatpublicauctionbytheFederalReserve.•Smallpurchaserscansubmitnoncompetitivebidswheretheyareguaranteedsecuritiesattheaverageoftheacceptedcompetitivebids.•Governmentsecuritiesinclude:bills1to12months;notes2to10years,andbonds10yearsandup.6LOSb:Distinguishbetweencompetitivebids,negotiatedsales,andprivateplacementsforissuingbonds•Municipalbondissuesarebroughttomarketbyalocalgovernmentunitthrough:–Competitivebiddingwiththeunderwriter.Thismeanstheunderwriterwillhelporiginatetheissue,bearthepricerisk,andsellthesecuritiesforacompetitivelydeterminedfee.–Anegotiatedunderwriting.Heretheunderwriterhelpsoriginatetheissue,bearthepricerisk,anddistributetheissueforanegotiatedfee.–Aprivateplacementwherethegovernmentalunitsellstheissuedirectlytotheinvestorwithoutthehelpofanunderwriter.7LOSc:thesecondarymarketsforU.S.government/municpalbondswiththecorporatebonds.•secondarymarketfortreasuriesisthroughthe35majortreasurydealers.Agencysecuritiesandmunicipalbondsaretradedthroughthemajorbanksandinvestmentfirms.•ThesecondarycorporatebondmarketsaretheNewYorkStockExchange(NYSE),theAmericanStockExchange(AMEX)andover-the-counter(OTC).YoushouldknowthatthebulkofallbondtradingtakesplaceintheOTCmarket.8LOSd:Distinguishbetweenprimaryandsecondarycapitalmarketsandexplainhowsecondarysupportprimary.•Primarycapitalmarketsrelatetothesaleofnewissuesofbondsandsecuritiesbygovernmentunits,municipalities,orfirmstoobtainnewcapital.•Secondaryfinancialmarketsarewheresecuritiestradeaftertheirinitialoffering.Secondarymarketsareimportantbecausetheygiveinvestorsliquidity.Liquidityenablesinvestorstosellquickly.Thegreatertheliquiditysecuritieshave,themorewillinginvestorsaretobuysecurities.Liquidsecondarymarketsalsoprovideinvestorswithcontinuousinformationaboutthemarketpriceoftheirsecurities.Thebetterthesecondarymarket,theeasieritisforfirmstoraiseexternalcapital.9Serviceprovidedbyunderwriter•Underwriterssellthebondstoinvestors–Origination–Risk-bearing–Distribution10TheUnderwritingFunction•Theinvestmentbankerpurchasestheentireissuefromtheissuerandresellsthesecuritytotheinvestingpublic.•Thefirmchargesacommissionforprovidingthisservice.•Formunicipalbonds,theunderwritingfunctionisperformedbybothinvestmentbankingfirmsandcommercialbanks11CorporateBondandStockIssuesNewissuesaredividedintotwogroups1.Seasonednewissues-newsharesofferedbyfirmsthatalreadyhavestockoutstanding2.Initialpublicofferings(IPOs)-afirmsellingitscommonstocktothepublicforthefirsttime12IntroductionofRule415•Allowsfirmstoregistersecuritiesandsellthempiecemealoverthenexttwoyears•Referredtoasshelfregistrations•Greatflexibility•Reducesregistrationfeesandexpenses•Allowsrequestingcompetitivebidsfromseveralinvestmentbankingfirms•Mostlyusedforbondsales13PrivatePlacementsandRule144A•Firmssellstoasmallgroupofinstitutionalinvestorswithoutextensiveregistration•Lowerissuingcoststhanpublicoffering14LOSe:CallVersusContinuousMarkets•Callmarketstradeindividualstocksatspecifiedtimestogatherallordersanddetermineasinglepricetosatisfythemostorders•UsedforopeningpricesonNYSEifordersbuildupovernightoraftertradingissuspended•Inacontinuousmarket,tradesoccuratanytimethemarketisopen,Thepriceissetbyeithertheauctionprocessorbydealerbid-askquotes.15SecondaryFinancialMarkets•Providesliquiditytoinvestorswhoacquiresecuritiesint