金融學(xué)（第四版）課件：Securities Firms,Mutual Funds,and Financial Conglomerates

SecuritiesFirms,MutualFunds,andFinancialConglomerates

2SecuritiesFirmsFunctionsofsecuritiesfirmsinvestmentbankingmarketingnewlyissuedsecuritiesintheprimarymarketbuyingandsellingofpreviouslyissuedsecuritiesSomesecuritiesfirmsprovidebothfunctions,whileothersprovideonlyoneortheother3SecuritiesFirmsHouseholdshaveshiftedawayfrombankdepositsandintofinancialsecuritiesin1975,55%ofhouseholdfinancialassetswereinbankdeposits,43%wereinstocksandbonds,and2%wereinmutualfundsin2003,25%ofhouseholdfinancialassetswereinbankdeposits,49%wereinstocksandbonds,and26%wereinmutualfunds4InvestmentBanksInvestmentbanksareFIsthatdesign,market,andunderwritenewissuancesofsecuritiesintheprimarymarketInreturnfortheirservices,investmentbanksarepaidafeeManyarealsobrokersanddealersinthesecondarymarket5NewOfferingsTherearetwotypesofnewofferingsinitialpublicoffering(IPO)thecompanyhasnotpreviouslysoldstocksorbondstothepublicitisusuallydifficulttodeterminethepriceatwhichthisisofferedseasonedissuancethecompanyhaspreviouslyissuedstocksorbondspricewillbethesameasthepriceoftheoutstandingsecurities6NewOfferingsTimingisoneofthemostimportantfactorsaffectingthesellingpriceofnewsecuritiescurrentsharepricecurrentearningsreportsstrengthoftheeconomycurrentinterestrates(forbonds)7TheSecuritiesandExchangeCommissionTheinvestmentbankmustfileformswiththeSecuritiesandExchangeCommission(SEC)agovernmentagencycreatedin1934thatregulatesthesecuritiesindustry“disclosure”requirementsfornewsecuritiesmonitoringofillegalandfraudulentbehavior8NewOfferingsAregistrationstatementmustbefiledwiththeSECbeforeanewofferingcanbeissuedcontainsinformationabouttheoffering,thecompany,andotherdisclosureinformationincludingrelevantinformationaboutmanagement,whatthefundswillbeusedfor,andthefinancialhealthofthecorporation9NewOfferingsTheprospectus(whichisasubpartoftheregistrationstatement)mustbegiventoinvestorsbeforetheypurchasethesecurities10NewOfferingsInvestmentbanksmustalsoassistinobtainingacreditratingforthenewissuancefromStandard&Poor’sorMoody’sInvestorsServicesatrusteeisselectedthatwillmonitorwhetherthecorporationfulfillsthetermsoftheofferingasoutlinedinthebondindenturespellsoutthetermsoftheofferingbeforethebondsarepurchased11NewOfferingsInunderwritingasecurity,theinvestmentbankpurchasestheentireissuanceatanagreed-uponpriceitthenassumestheresponsibilityformarketingthenewlyissuedsecuritiesifthepriceatwhichthebanksellsthesecurities>thepriceitpaid,thebankwillearnaprofitifthesecuritiessellforalowerpricethantheagreed-uponprice,thebankacceptstheloss12NewOfferingsIfaninvestmentbankisreluctanttotakefullresponsibilityforanewissuance,itcanformasyndicatebyaskingotherbankstounderwritepartofthenewoffering13TheFunctioningofthe

PrivateMarketInvestmentbanksfacilitatethesmoothandorderlyfunctioningofprimarymarketsstandreadytoholdsecuritiesifthereisnoimmediatebuyerinvolvesriskfortheinvestmentbankbankearnsprofitsfromitsfeesandfrom(hopefully)sellingsecuritiesathigherpricesthanitpaidforthem14U.S.CorporateUnderwritingActivity,1985-2004(billionsof$)15PrivatePlacementInvestmentbanksalsohandleprivateplacementalternativeforacorporationissuingnewsecuritiesbypassestheprocessdescribedearlierandplacesthenewsecuritiesofferingprivatelynewsecuritiesaresoldtoalimitednumberofinvestorsoccursmoreoftenwithbondsthanwithstocks16TheSecondaryMarketBrokersarrangetradesbetweenbuyersandsellerschargeabrokeragefeeorcommissionDealersaremarketmakerswho(inadditiontoarrangingtradesforbuyerandsellers)standreadytopurchaseandholdpreviouslyissuedsecuritiesfacetheriskthatthepriceofthesecuritieswillfall17TypesofOrdersMarketordersdirectthebrokerordealertopurchaseorsellthesecuritiesatthepresentmarketpriceLimitordersinstructthebrokerordealereithertopurchasethesecuritiesatthemarketpriceuptoamaximumorsellthesecuritiesatthemarketpriceifitisaboveaminimum18TypesofOrdersShortsellinstructsthebrokerordealertoborrowsharesofstockandsellthemtodaywiththeguaranteethattheborrowedstockswillbereplacedbyaparticulardateinthefuture19MarginLoansFull-servicebrokeragefirmsalsomakemarginloansloansmadetoinvestorstohelpthempurchasesecuritiesthemarginrequirementisthepercentageofastockpurchasethatcanbeborrowedthecurrentmarginrequirementis50%(setbytheFedin1974)manybrokeragefirmssethighermarginrequirements20BrokerageFeesUntil1975,allbrokeragefirmschargedthesamebrokeragefeesforexecutingtradesdistinguishedthemselvesthroughnonpricecompetitionbetterandmoreattentiveadvicegeographicaladvantagesnamerecognition21BrokerageFeesThischangedwhenCongresspassedtheSecuritiesActsAmendmentof1975eliminatedfixedcommissionsDuetoincreasedcompetitionamongbrokeragefirmsandtheemergenceofdiscountbrokersandonlinetrading,brokeragefeerevenueshavefallenbrokeragefirmsarenowearningmoreonadvisingfeesandinterestincomeonmarginloans22OtherRegulatorsoftheSecuritiesIndustryInadditiontotheSEC,thesecuritiesisalsoself-regulatedbytheNationalAssociationofSecuritiesDealers(NASD)andvarioussecuritiesexchangesBrokeragefirmsmustpurchaseinsurancefortheircustomersfromtheSecuritiesIndustryProtectionCorporation(SIPC)protectsinvestorsforupto$500,000incasethebrokeragefirmbecomesinsolvent23InvestmentCompaniesInvestmentcompaniesareFIsthatraisefundsfrommanysmallinvestorsbysellingsharesinthecompanyfundsarepooledtogetherandusedtopurchasefinancialsecuritiesreducesriskforindividualinvestorsbecauseitallowsthemtodiversifytoamuchgreaterextentlowerstransactionscostsbecauselargeblocksofsecuritiesareboughtandsold24Open-EndandClosed-EndCompaniesAnopen-endfundcontinuallysellsnewsharestothepublicorbuysoutstandingsharesfromthepublicatapriceequaltothenetassetvaluethenetassetvaluepershareisfoundbysubtractingtheliabilitiesofthemutualfundfromthemarketvalueofthesecuritiesthatthefundownsanddividingbythenumberofoutstandingshares25Open-EndandClosed-EndCompaniesThevastmajorityofopen-endcompaniesarecalledmutualfundsmutualfundsthatdealinmoneymarketinstrumentswithanoriginalmaturityofoneyearorlessarecalledmoneymarketmutualfundsissuemoresharesasinvestorsdemandthemmutualfundsarenottradedonorganizedexchangesbuyandselltheirownshares26Open-EndandClosed-EndCompaniesClosed-endinvestmentcompaniessellshareslikeothercorporations,butusuallydonotbuybackexistingsharesoncethesaleofalimitednumberofsharesiscompleted,thefundis“closed”tonewpurchasesbutmaybetradedlikesharesonorganizedexchangesthepriceofashareofaclosed-endfundcandifferfromthenetassetvaluedeterminedbysupplyanddemand27LoadandNo-LoadCompaniesSomeinvestmentcompaniesrequirethataload(salescommission)bepaidtothebrokertobuyintoafundNo-loadfundsarepurchaseddirectlyfromthemutualfundcompanywithoutabrokerorasalescommissionBothtypesoffundsdeductapercentagefromthenetassetvalueeachyeartoadministerthefundsmayalsodeductafeeformarketingexpenses28TheValueofOutstandingSharesofInvestmentCompanies,1982-200429GrowthofInvestmentFundsInvestmentfundshaveexperiencedtremendousgrowthsincethe1980sespeciallymutualfundsmanyindividualshavechosenmutualfundswiththeirpensionassetsInJuly2003,47.9%ofU.S.householdsownedmutualfunds30GrowthofInvestmentFundsManytypesofmutualfundscanbeofferedbyonecompanyinvestorscanownseveraldifferentfundscanmovemoneyinandoutofvariousfundsatonecompanywithrelativeeaseInvestmentcompaniesmayalsohavefundsthatinvestinseveralothermutualfundsafundoffundsgreaterdiversitybutpossiblyhighercosts31TypesofMutualFunds32TypesofMutualFunds33TypesofMutualFunds34HedgeFundsHistorically,ahedgefundwasanontraditionalfundformedofupto99“accredited”investorswhoinvestedinavarietyofoftenriskysecuritiesan“accredited”investorwasonewhohadatleast$1millionininvestableassets35HedgeFundsIn1997,theSECexpandedtherulesbyallowingsomehedgefundstoraisemoneyfrom499“qualified”investorsa“qualified”investorisonewhohasaminimumnetworthof$5millionoraninstitutionsuchasapensionfundoramutualfundwithatleast$25millionincapital36HedgeFundsAgeneralpartnerusuallyorganizesthefundandisresponsiblefortheday-to-daymanagementLimitedpartnersputupmostofthefundsMinimuminvestmentsstartaround$250,000(maybehigher)andwithdrawalsarelimited37HedgeFundsHedgefundsarenotregulatedlikemutualfundsortraditionalinvestmentpoolsarenotrequiredtofilearegistrationstatementmayengageintradingstrategiesfromwhichmutualfundsarebarredborrowingfundstoinvestpurchasingmanytypesofoptionandderivativeinstrumentsshortsellingdealinginrealestateandcommodities38HedgeFundsHedgefundsattempttoearnhighormaximumreturnsregardlessofwhetherpricesinbroaderfinancialmarketsarerisingorfallingtradesecuritiesandothercreativefinancialinstrumentsandtrytooutperformtraditionalinvestmentfundsbyemployingnoveltradingstrategieschargehighfeesandtakealargepercentoftheprofits39RealEstateInvestmentTrustsRealestateinvestmenttrusts(REITs)areaspecialtypeofmutualfundthatpoolthefundsofmanysmallinvestorsandusethemtomakeinvestmentsinbothfinancialinstrumentsandrealpropertytheyalsoraisefundsbytakingoutbankloansorissuingdebtrentsfrompropertyorinterestfrommortgagesarepassedthroughtoshareholders40RealEstateInvestmentTrustsAtleast75%oftheassetsofREITsmustbeeitherrealpropertyormortgagesREITsmustreturn95%oftheirearningstoshareholderseachyearREITsareexemptfromcorporatefederalandstateincometaxesavoidsdoubletaxation41RealEstateInvestmentTrustsSharesofREITSaretradedonorganizedexchangeslikesharesofstocktheyareliquidinvestmentseventhoughtheirequityisinrealpropertyandlong-termmortgagespricesaredeterminedbysupplyanddemand42Government-SponsoredEnterprisesGovernment-sponsoredenterprises(GSEs)arecorporationsthataresponsoredorcharteredbyCongressprivatelyownedandmanagedSomeGSEshaveissuedsharesofstockthataretradedonorganizedexchanges43Government-SponsoredEnterprisesGSEsissueshort-termsecuritiesthatsellatadiscountandlong-termbondsthatpaysemiannualcouponpaymentsthemajorityofissuancesarelongtermproceedsareusedtoassistinsomeaspectoflendingthatthefederalgovernmenthasdeemeddesirablehousingfarmcreditstudentloans44Government-SponsoredEnterprisesThefederalgovernmenthasnolegalobligationtoguaranteethetimelypaymentofinterestandprincipalofGSEsecuritiesInrecentyears,GSEshaveincreasedsignificantlyintermsoftheirsizeandmarketshare45FinancialAssetsandLiabilitiesofGovernment-SponsoredEnterprises46TheGSEHousingMarketTheGSEsthatpertaintothehousingmarketaretheFederalNamtionalMortgageAssociation(FannieMae),theFederalHomeLoanMortgageCorporation(FreddieMac),andtheGovernmentNationalMortgageAssociation(GinnieMae)CongresscreatedtheseGSEstomakehousingmoreavailable47TheGSEFarmLoanMarketTheFederalFarmCreditBanksFundingCorporation(FFCBFC)issuesbondsanddiscountnotesandusestheproceedstomakeloanstofarmersIn1987,CongresscreatedtheFarmCreditFinancialAssistanceCorporation(FACO)issuesbondsandusesthebondstoassisttheFFCBFC48TheGSEStudentLoanMarketTheStudentLoanMarketingAssociation(SallieMae)issuessecuritiesandusestheproceedstopurchasestudentloanstomakethemmoreliquid49OtherGSEsIn1987,CongresscreatedtheFinancingCorporation(FICO)inresponsetotheS&LcrisishelpshoreupdepositinsuranceIn1989,CongresscreatedtheResolutionTrustCorporation(RTC)inresponsetotheS&Lcrisisusedtodissolveorfindbuyersforthefailedthrifts(finishedbytheendof1995)50FinancialConglomeratesFinancialconglomeratesarefirmsthatownandoperateseveraldifferenttypesoffinancialintermediariesandfinancialinstitutionsgenerallyoperateonaglobalbasistakeadvantagesofeconomiesofscale,economiesofscope,anddiversification51FinancialConglomeratesFinancialconglomerateshavebeenemergingsincetheearly1970sregulationsdatingbacktotheGlass-SteagallActattemptedtopreventdifferenttypesoffinancialfirmsfrommergingandprovidingavastarrayoffinancialservicesbythemid-1990s,manyinstitutionswerefindingloopholesinordertoformfinancialconglomerates52FinancialConglomeratesTheGramm-Leach-BlileyActgavenewimpetustotheformationoffinancialconglomeratesallowedfortheformationoffinancialholdingcompanies(FHCs)FHCsmayownsecuritiesfirms,banks,andinsurancecompaniesFHCsmayengageinancillaryfinancialandcomplementarynonfinancialenterprises53SummaryofMajorPointsInvestmentbanksdesign,market,andunderwritetheissuanceofnewsecuritiesintheprimarymarketnewlyissuedsecuritiesmaybeanIPOoraseasonedofferinginadditiontoadvisingtheissueraboutmarketconditions,theinvestmentbankalsoassistsinfilingthenecessaryreportstotheSEC54SummaryofMajorPointsMutualfundspoolthefundsofmanyinvestorstoinvestinseveralhundredoreventhousandsofstocksorbondsoffergreatersafetyandmorediversificationthaninvestinginoneorafewstockshaveseentremendousgrowthinrecentyearsMoneymarketmutualfundsinvestinsecuritieswithanoriginalmaturityofoneyearorless55Summaryo