博迪投資學(xué)Chap003章節(jié)(854KB)

CHAPTER

3How

Securitiesare

TradedHow

Firms

Issue

SecuritiesPrimaryNew

issueKey

factor:

issuer

receives

the

proceedsfrom

the

saleSecondaryExisting

owner

sells

to

another

partyIssuing

firm

doesn’t

receive

proceedsand

is

not

directly

involvedHow

Firms

Issue

Securities

ContinuedInvestment

BankingShelf

RegistrationPrivate

PlacementsInitial

Public

Offerings

(IPOs)Investment

Banking

Underwritten:

firm

commitment

onproceedsto

the

issuing

firmRed

herringProspectusFigure

3.1

Relationship

Among

a

Firm

IssuingSecurities,

the

Underwriters

and

the

PublicShelf

RegistrationsSEC

Rule

415Introduced

in

1982Ready

to

be

issued

–

on

the

shelf

Sale

to

a

limited

number

of

sophisticatedinvestors

not

requiring

the

protection

ofregistrationAllowed

under

Rule

144ADominated

by

institutionsVery

active

market

for

debt

securitiesNot

active

for

stock

offeringsPrivate

PlacementsInitial

Public

OfferingsProcessRoad

showsBookbuildingUnderpricingPost

sale

returnsCost

to

the

issuing

firmFigure

3.2

Average

Initial

Returns

forIPOs

in

Various

CountriesFigure

3.3

Long-term

RelativePerformance

of

Initial

Public

OfferingsHow

Securities

are

TradedTypes

of

Markets –

Direct

searchLeast

organizedBrokeredTrading

in

a

good

is

activeDealer

Trading

in

a

particular

type

of

assetincreasesAuctionMost

integratedTypes

of

OrdersMarket—executed

immediatelyBid

PriceAsk

PricePrice-contingentInvestors

specify

pricesStop

ordersFigure

3.4

The

Limit

Order

Book

for

Intelon

the

Archipelago

Market,January

19,

2007Figure

3.5

Price-Contingent

OrdersTrading

MechanismsDealer

marketsElectronic

communication

networks

(ECNs)Specialists

marketsU.S.

SecurityMarkets

Nasdaq

and

NYSE

have

evolved

in

responseto

new

information

technology

Both

have

increased

their

commitment

toautomated

electronic

tradingNasdaqNational

Market

SystemNasdaq

Small

Cap

MarketLevels

of

subscribersLevel

1

–

inside

quotesLevel

2

–

receives

all

quotes

but

they

can’tenter

quotesLevel3

–

dealers

making

marketsTable

3.1

Partial

Requirements

for

Listion

NASDAQ

MarketsNew

York

Stock

ExchangeMember

functionsCommission

brokersFloor

brokersSpecialistsBlock

housesSuperDotTable

3.2

Some

Initial

ListingRequirements

for

the

NYSETable

3.3

Block

Transactions

on

theNew

York

Stock

ExchangeOther

SystemsElectronic

Communication

Networks–

Private

computer

networks

that

directly

linbuyers

with

sellersNationalMarket

SystemSecurities

Act

of

Amendments

of

1975Bond

TradingAutomated

Bond

System

(ABS)Market

Structure

in

Other

CountriesLondon

-

predominately

electronic

trading

Euronext

–

market

formed

by

combination

ofthe

Paris,

Amsterdam

and

Brussels

exchangesTokyo

Stock

Exchange

Globalization

and

consolidation

of

stockmarketsFigure

3.6

Market

Capitalization

ofMajor

World

Stock

Exchanges,

2007Trading

Costs

Commission:

fee

paid

to

broker

for

makingthe

transactionSpread:

cost

of

trading

with

dealerBid:

price

dealer

will

buy

from

youAsk:

price

dealer

will

sell

to

youSpread:

ask

-

bid

Combination:

on

some

trades

both

arepaidBuying

on

Margin

Using

only

a

portion

of

the

proceeds

for

aninvestmentBorrow

remaining

component

Margin

arrangements

differ

for

stocks

andfuturesStock

Margin

Trading

Margin

is

currently

50%;

youcan

borrow

up

to50%

of

the

stock

value–

Set

by

the

FedMaintenance

margin:

minimum

amount

equityin

trading

can

be

before

additional

funds

mustbe

put

into

the

account

Margin

call:

notification

from

broker

that

youmust

put

up

additional

fundsMargin

Trading

-

Initial

ConditionsExample

3.1X

Corp60%40%100$100Initial

MarginMaintenance

MarginShares

PurchasedInitial

PositionStock$10,000

BorrowedEquity$4,000$6,000Margin

Trading

-

Maintenance

MarginExample

3.1Stock

price

falls

to

$70

per

shareNew

PositionStock

$7,000BorrowedEquity$4,000$3,000Margin%

=

$3,000/$7,000

=

43%Margin

Trading

-

Margin

Call

Example

3.2How

far

can

the

stock

price

fall

before

amargin

call?(100P

-

$4,000)*

/

100P

=

30%P

=

$57.14*

100P

-

Amt

Borrowed

=

EquityTable

3.4

Illustration

of

Buying

Stockon

MarginShort

Sales

Purpose:

to

profit

from

a

decline

in

the

priceof

a

stock

or

securityMechanicsBorrow

stock

through

a

dealerSell

it

and

deposit

proceeds

and

margin

inan

accountClosing

out

the

position:

buy

the

stockand

return

to

the

party

from

which

is

wasborrowedShort

Sale

–

Initial

Conditions

Example

3Dot

Bomb50%30%$1001,000

SharesInitial

MarginMaintenance

MarginInitial

PriceSale

Proceeds

$100,000Margin

&

EquityStock

Owed50,000100,000Short

Sale

-

Maintenance

MarginStock

Price

Rises

to

$110Sale

Proceeds$10,000Initial

Margin5,000Stock

Owed11,000Net

Equity4,000Margin

%

(4000/11,000)36%Short

Sale

-

Margin

CallHow

much

can

the

stock

price

rise

before

amargin

call?($150,000*

-

1000P)

/

(100P)

=

30%P

=

$115.38*

Initial

margin

plus

sale

proceedsRegulation

of

SecuritiesMarketsMajor

regulationsSecurities

Act

of

1933Securities

Act

of

1934Securities

Investor

Protection

Act

of

1970Self-RegulationStock