工商导论9

1- 7
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 8
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
When a new stock or bond is issued, it is handled by primary market.
To bring the new issue to the market, the issuing corporation needs the service of an investment banker which underwrites (purchases) the new issue and distributes it through groups of other bankers and brokers into the hands of individual investors.
Stocks are equity; bonds are debt.
The key reason to purchase bonds is to diversify your portfolio证券投资组合.
The issuers of bonds are governments and corporations. A bond is characterized by its face value, coupon rate票
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 6
Stock Basics
Stock means ownership. As an owner, you have a claim on the assets and earnings of a company as well as voting rights with your shares.
As stocks represents ownership and bonds represent debt, they both represent a secured (asset based) claim on the part of investors and are known as securities.
Fundamentals of Business
Chaparkets
1- 2
Topics covered
Introduction Stock Basics Bond Basics
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
The market for dealings of stocks and bonds is collectively called the securities market.
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 12
Bond Basics
Bonds are just like IOUs. Buying a bond means you are lending out your money.
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 5
Introduction
Securities markets can be divided into primary and secondary markets.
Stock is equity, bonds are debt. Bondholders are guaranteed a return on their investment and have a higher claim than shareholders. This is generally why stocks are considered riskier investments and require a higher rate of return.
1- 9
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1-10 Stock Basics—bulls and bears
The Bulls : A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic, believing that stocks will go up, he or she is called a "bull" and said to have a "bullish outlook."
1- 3
Introduction
In order to raise long – term funds, as discussed earlier, a corporation can issue stock for equity financing or bonds for debt financing.
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1-11 Stock Basics—bulls and bears
The Bears : A bear market is when the economy is bad, recession is looming, and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling 沽 空 ， 卖 空 . Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook."
面利率, maturity and issuer发行人. Yield收益 is the rate of return you get on a bond.
When price goes up, yield goes down, and vice versa.
When interest rates rise, the price of bonds in the market falls, and vice versa.
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 13
Bond Basics
The two main types of stock are common and preferred. It is also possible for a company to create different classes of stock.
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
1- 4
Introduction
Definition: An instrument representing ownership (stocks), a debt agreement (bonds)
Bonds are debt, whereas stocks are equity. This is the important distinction between the two securities. By purchasing equity (stock) an investor becomes an owner in a corporation. Ownership comes with voting rights and the right to share in any future profits. By purchasing debt (bonds) an investor becomes a creditor to the corporation (or government). The primary advantage of being a creditor is that you have a higher claim on assets than shareholders do: that is, in the case of bankruptcy, a bondholder will get paid before a shareholder. However, the bondholder does not share in the profits if a company does well - he or she is entitled only to the principal plus interest. To sum up, there is generally less risk in owning bonds than in owning stocks, but this comes at the cost of a lower return.