金融保险-货币金融学 米什金 ch02 精品
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• A secondary market is a financial market in which securities that have been previously issued can be resold.
– Investment Banks underwrite securities in primary market.
• The advantage of holding equities is that equity holders benefit directly from any increases in the corporation’sUS, the size of the debt market is often larger than the size of the equities market.
• Owing stock means you own a portion of the firm and thus have the right to vote on issues important to the firm and to elect its directors.
• The main disadvantage of owning a corporation’s equities rather than its debt is that an equity holder is a residual claimant; that is ,the corporation must pay all its debt holders before it pays its equity holders
– Equities
– Claims to share in the net income and the assets of a business.
• Equities often make periodic payments (dividends) to their holders and have no maturity date.
2.2 Structure of Financial Markets
• 2.2.1 Debt and Equity Markets
– Debt instruments
A bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date (maturity date).
• Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities.
FIGURE 1 Flows of Funds Through the Financial System
Maturity: number of years (term) until that instrument’s expiration date.
short-term: less than a year. long-term: ten years of longer intermediate-term: between one and ten years
It guarantees an price for a corporation’s securities and then sells them to the public.
– Brokers and dealers work in secondary markets funds.
The New York and American stock exchanges and NASDAQ are the best-known examples of secondary markets.
• Two important functions of secondary markets:
• They make the financial instruments more liquid.
Chapter 2
An Overview of the Financial System
2.1 Function of Financial Markets
• Perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds
Function of Financial Markets
• Promotes economic efficiency by producing an efficient allocation of capital, which increases production
• Directly improve the well-being of consumers by allowing them to time purchases better
• 2.2.2 Primary and Secondary Markets
• A primary market is a financial market in which new issues of a security are sold to initial buyers by the corporation or government agency borrowing the funds.
– Investment Banks underwrite securities in primary market.
• The advantage of holding equities is that equity holders benefit directly from any increases in the corporation’sUS, the size of the debt market is often larger than the size of the equities market.
• Owing stock means you own a portion of the firm and thus have the right to vote on issues important to the firm and to elect its directors.
• The main disadvantage of owning a corporation’s equities rather than its debt is that an equity holder is a residual claimant; that is ,the corporation must pay all its debt holders before it pays its equity holders
– Equities
– Claims to share in the net income and the assets of a business.
• Equities often make periodic payments (dividends) to their holders and have no maturity date.
2.2 Structure of Financial Markets
• 2.2.1 Debt and Equity Markets
– Debt instruments
A bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date (maturity date).
• Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities.
FIGURE 1 Flows of Funds Through the Financial System
Maturity: number of years (term) until that instrument’s expiration date.
short-term: less than a year. long-term: ten years of longer intermediate-term: between one and ten years
It guarantees an price for a corporation’s securities and then sells them to the public.
– Brokers and dealers work in secondary markets funds.
The New York and American stock exchanges and NASDAQ are the best-known examples of secondary markets.
• Two important functions of secondary markets:
• They make the financial instruments more liquid.
Chapter 2
An Overview of the Financial System
2.1 Function of Financial Markets
• Perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds
Function of Financial Markets
• Promotes economic efficiency by producing an efficient allocation of capital, which increases production
• Directly improve the well-being of consumers by allowing them to time purchases better
• 2.2.2 Primary and Secondary Markets
• A primary market is a financial market in which new issues of a security are sold to initial buyers by the corporation or government agency borrowing the funds.