INVESTMENTS 投资学 （博迪BODIE, KANE, MARCUS）Chap03 How Securities are Traded.ppt

CHAPTER3 HowSecuritiesareTraded 2 HowFirmsIssueSecurities PrimaryMarketFirmsissuenewsecuritiesthroughunderwritertopublicInvestorsgetnewsecurities firmgetsfundingSecondaryMarketInvestorstradepreviouslyissuedsecuritiesamongthemselves 3 HowFirmsIssueSecurities Ctd StocksIPOSeasonedofferingBondsPublicofferingPrivateplacement 4 InvestmentBanking Underwriting InvestmentbankhelpsthefirmtoissueandmarketnewsecuritiesProspectus Describestheissueandtheprospectsofthecompany Redherring 5 Figure3 1RelationshipAmongaFirmIssuingSecurities theUnderwriters andthePublic 6 InvestmentBanking Firmcommitmentinvestmentbankpurchasessecuritiesfromtheissuingcompanyandthenresellsthemtothepublic ShelfRegistrationSECRule415 Allowsfirmstoregistersecuritiesandgraduallysellthemtothepublicfortwoyears 7 InvestmentBanking Ctd PrivateplacementsFirmusesunderwritertosellsecuritiestoasmallgroupofinstitutionalorwealthyinvestors CheaperthanpublicofferingsPrivateplacementsnottradedinsecondarymarkets 8 InitialPublicOfferings ProcessRoadshowstopublicizenewofferingBookbuildingtodeterminedemandforthenewissueDegreeofinvestorinterestinthenewofferingprovidesvaluablepricinginformation 9 Figure3 3Long termRelativePerformanceofInitialPublicOfferings 10 HowSecuritiesareTraded TypesofMarkets DirectsearchBuyersandsellersseekeachotherBrokeredmarketsBrokerssearchoutbuyersandsellers 11 HowSecuritiesareTraded TypesofMarkets DealermarketsDealershaveinventoriesofassetsfromwhichtheybuyandsellAuctionmarketstradersconvergeatoneplacetotrade 12 BidandAskedPrices BidPrice Bidsareofferstobuy Indealermarkets thebidpriceisthepriceatwhichthedealeriswillingtobuy Investors selltothebid Bid Askedspreadistheprofitformakingamarketinasecurity AskPrice Askedpricesrepresentofferstosell Indealermarkets theaskedpriceisthepriceatwhichthedealeriswillingtosell Investorsmustpaytheaskedpricetobuythesecurity 13 TypesofOrders MarketOrder ExecutedimmediatelyTraderreceivescurrentmarketpricePrice contingentOrder TradersspecifybuyingorsellingpriceAlargeordermaybefilledatmultipleprices 14 Figure3 5Price ContingentOrders 15 TradingMechanisms DealermarketsElectroniccommunicationnetworks ECNs TruetradingsystemsthatcanautomaticallyexecuteordersSpecialistsmarketsmaintaina fairandorderlymarket 16 NASDAQ Listsabout3 200firmsOriginally NASDAQwasprimarilyadealermarketwithapricequotationsystemToday NASDAQ sMarketCenteroffersasophisticatedelectronictradingplatformwithautomatictradeexecution Largeordersmaystillbenegotiatedthroughbrokersanddealers 17 Table3 1PartialRequirementsforListingonNASDAQMarkets 18 NewYorkStockExchange Listsabout2 800firmsAutomaticelectronictradingrunsside by sidewithtraditionalbroker specialistsystemSuperDot electronicorder routingsystemDirectPlus fullyautomatedexecutionforsmallordersSpecialists Handlelargeordersandmaintainorderlytrading 19 Table3 2SomeInitialListingRequirementsfortheNYSE 20 ElectronicCommunicationNetworks ECNs PrivatecomputernetworksthatdirectlylinkbuyerswithsellersforautomatedorderexecutionMajorECNsincludeNASDAQ sMarketCenter ArcaEx DirectEdge BATS andLavaFlow FlashTrading Computerprogramslookforeventhesmallestmispricingopportunityandexecutetradesintinyfractionsofasecond 21 BondTrading MostbondtradingtakesplaceintheOTCmarketamongbonddealers Marketformanybondissuesis thin NYSEisexpandingitsbond tradingsystem NYSEBondsisthelargestcentralizedbondmarketofanyU S exchange 22 MarketStructureinOtherCountries London predominatelyelectronictradingEuronext marketformedbycombinationoftheParis AmsterdamandBrusselsexchanges thenmergedwithNYSETokyoStockExchange 23 GlobalizationandConsolidationofStockMarkets NYSEmergersandacquisitions Archipelago ECN AmericanStockExchangeEuronextNASDAQmergersandacquisitions Instinet INET ECN BostonStockExchange 24 GlobalizationandConsolidationofStockMarkets ChicagoMercantileExchangeacquired ChicagoBoardofTradeNewYorkMercantileExchange 25 Figure3 6MarketCapitalizationofMajorWorldStockExchanges 2007 26 TradingCosts BrokerageCommission feepaidtobrokerformakingthetransactionExplicitcostoftradingFullServicevs DiscountbrokerageSpread DifferencebetweenthebidandaskedpricesImplicitcostoftrading 27 BuyingonMargin Borrowingpartofthetotalpurchasepriceofapositionusingaloanfromabroker Investorcontributestheremainingportion Marginreferstothepercentageoramountcontributedbytheinvestor Youprofitwhenthestockappreciates 28 BuyingonMargin Ctd InitialmarginissetbytheFedCurrently50 MaintenancemarginMinimumequitythatmustbekeptinthemarginaccountMargincallifvalueofsecuritiesfallstoomuch 29 MarginTrading InitialConditionsExample3 1 Shareprice 10060 InitialMargin40 MaintenanceMargin100SharesPurchasedInitialPositionStock 10 000Borrowed 4 000Equity 6 000 30 MaintenanceMarginExample3 1 Stockpricefallsto 70pershareNewPositionStock 7 000Borrowed 4 000Equity 3 000Margin 3 000 7 000 43 31 MarginCallExample3 2 Howfarcanthestockpricefallbeforeamargincall Letmaintenancemargin 30 Equity 100P 4000Percentagemargin 100P 4 000 100P 100P 4 000 100P 0 30Solvetofind P 57 14 32 Table3 4IllustrationofBuyingStockonMargin 33 ShortSales Purpose toprofitfromadeclineinthepriceofastockorsecurityMechanicsBorrowstockthroughadealerSellitanddepositproceedsandmargininanaccountClosingouttheposition buythestockandreturntothepartyfromwhichitwasborrowed 34 ShortSale InitialConditionsExample3 3 DotBomb1000Shares50 InitialMargin30 MaintenanceMargin 100InitialPriceSaleProceeds 100 000Margin Equity 50 000StockOwed1000shares 35 Example3 3 Ctd DotBombfallsto 70pershare Assets 100 000 saleproceeds 50 000 initialmargin Liabilities 70 000 buyshares Equity 80 000 Profit endingequity beginningequity 80 000 50 000 30 000 declineinsharepricexnumberofsharessoldshort 36 ShortSale MarginCall Howmuchcanthestockpricerisebeforeamargincall 150 000 1000P 1000P 30 P 115 38 Initialmarginplussaleproceeds 37 RegulationofSecuritiesMarkets Ma