Financial-Markets-and-Institutions課件講義整理

FinancialMarketsandInstitutionsTheCapitalAllocationProcessFinancialMarketsFinancialInstitutionsStockMarketsandReturnsStockMarketEfficiencyChapter22-1FinancialMarketsandInstitutTheCapitalAllocationProcessInawell-functioningeconomy,capitalflowsefficientlyfromthosewhosupplycapitaltothosewhodemandit.Suppliersofcapital:individualsandinstitutionswith“excessfunds.”Thesegroupsaresavingmoneyandlookingforarateofreturnontheirinvestment.Demandersorusersofcapital:individualsandinstitutionswhoneedtoraisefundstofinancetheirinvestmentopportunities.Thesegroupsarewillingtopayarateofreturnonthecapitaltheyborrow.2-2TheCapitalAllocationProcessHowiscapitaltransferredbetweensaversandborrowers?2-3DirecttransfersInvestmentbanksFinancialintermediariesHowiscapitaltransferredbetWhatisamarket?Amarketisavenuewheregoodsandservicesareexchanged.Afinancialmarketisaplacewhereindividualsandorganizationswantingtoborrowfundsarebroughttogetherwiththosehavingasurplusoffunds.2-4Whatisamarket?AmarketisaTypesofFinancialMarketsPhysicalassetsvs.FinancialassetsSpotvs.FuturesMoneyvs.CapitalPrimaryvs.SecondaryPublicvs.Private2-5TypesofFinancialMarketsPhysTheImportanceofFinancialMarketsWell-functioningfinancialmarketsfacilitatetheflowofcapitalfrominvestorstotheusersofcapital.Marketsprovidesaverswithreturnsontheirmoneysaved/invested,whichprovidethemmoneyinthefuture.Marketsprovideusersofcapitalwiththenecessaryfundstofinancetheirinvestmentprojects.Well-functioningmarketspromoteeconomicgrowth.Economieswithwell-developedmarketsperformbetterthaneconomieswithpoorly-functioningmarkets.2-6TheImportanceofFinancialMaWhatarederivatives?Howcantheybeusedtoreduceorincreaserisk?Aderivativesecurity’svalueis“derived”fromthepriceofanothersecurity(e.g.,optionsandfutures).Canbeusedto“hedge”orreducerisk.Forexample,animporter,whoseprofitfallswhenthedollarlosesvalue,couldpurchasecurrencyfuturesthatdowellwhenthedollarweakens.Also,speculatorscanusederivativestobetonthedirectionoffuturestockprices,interestrates,exchangerates,andcommodityprices.Inmanycases,thesetransactionsproducehighreturnsifyouguessright,butlargelossesifyouguesswrong.Here,derivativescanincreaserisk.2-7Whatarederivatives?HowcanTypesofFinancialInstitutionsInvestmentbanksCommercialbanksFinancialservicescorporationsCreditunionsPensionfundsLifeinsurancecompaniesMutualfundsExchangetradedfundsHedgefundsPrivateequitycompanies2-8TypesofFinancialInstitutionPhysicalLocationStockExchangesvs.ElectronicDealer-BasedMarkets2-9Auctionmarketvs.Dealermarket(Exchangesvs.OTC)NYSEvs.NasdaqDifferencesarenarrowingPhysicalLocationStockExchanStockMarketTransactionsAppleComputerdecidestoissueadditionalstockwiththeassistanceofitsinvestmentbanker.Aninvestorpurchasessomeofthenewlyissuedshares.Isthisaprimarymarkettransactionorasecondarymarkettransaction?Sincenewsharesofstockarebeingissued,thisisaprimarymarkettransaction.WhatifinsteadaninvestorbuysexistingsharesofApplestockintheopenmarket.Isthisaprimaryorsecondarymarkettransaction?Sincenonewsharesarecreated,thisisasecondarymarkettransaction.2-10StockMarketTransactionsAppleWhatisanIPO?Aninitialpublicoffering(IPO)occurswhenacompanyissuesstockinthepublicmarketforthefirsttime.“Goingpublic”enablesacompany’sownerstoraisecapitalfromawidevarietyofoutsideinvestors.Onceissued,thestocktradesinthesecondarymarket.Publiccompaniesaresubjecttoadditionalregulationsandreportingrequirements.2-11WhatisanIPO?AninitialpublS&P500Index,TotalReturns:DividendYield+CapitalGainorLoss,1968-20102-12S&P500Index,TotalReturns:Wherecanyoufindastockquote,andwhatdoesonelooklike?Stockquotescanbefoundinavarietyofprintsources(TheWallStreetJournalorthelocalnewspaper)andonlinesources(Yahoo!Finance,CNNMoney,orMSNMoneyCentral).2-13Source:GlaxoSmithKline(GSK),.StockQuoteforGlaxoSmithKline,July11,2011WherecanyoufindastockquoHighlyInefficient

HighlyEfficient

Smallcompaniesnotfollowedbymanyanalysts.Notmuchcontactwithinvestors.

Largecompaniesfollowedbymanyanalysts.Goodcommunicationswithinvestors.

Whatismeantbystockmarketefficiency?Securitiesarenormallyinequilibriumandare“fairlypriced.”Investorscannot“beatthemarket”exceptthroughgoodluckorbetterinformation.Efficiencycontinuum2-14HighlyHighlySmallcompaniesnoImplicationsofMarketEfficiencyYouhearinthenewsthatamedicalresearchcompanyreceivedFDAapprovalforoneofitsproducts.Ifthemarketishighlyefficient,canyouexpecttotakeadvantageofthisinformationbypurchasingthestock?No.Ifthemarketisefficient,thisinformationwillalreadyhavebeenincorporatedintothecompany’sstockprice.So,it’sprobablytoolateforherto“capitalize”ontheinformation.2-15ImplicationsofMarketEfficieImplicationsofMarketEfficiencyAsmal