TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 6 - Ritter, Silber, Udell

Chapter 6 - The structure and performance of securities markets. In this chapter you will learn to differentiate between the types of financial markets including auction, brokered, and dealer markets; describe the differences and functions of the primary and secondary markets; understand the function and determination of bid/ask spreads; explain the efficient markets hypothesis and its relevance to the allocational efficiency of financial markets. | Chapter 6 The Structure and Performance of Securities Markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • Differentiate the types of financial markets including auction, brokered, and dealer markets • Describe the differences and functions of the primary and secondary markets • Understand the function and determination of bid/ask spreads • Explain the efficient market hypothesis and its relevance to the allocation efficiency of financial markets Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 6-2 Nature and Function of Securities Markets • All markets bring sellers and buyers together • Price balances supply and demand for the securities by all potential market participants • Key role of markets is to provide information to buyers/sellers • Markets reduce transaction costs – Buyers and sellers may be unaware of each other – Different locations – Different times Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 6-3 1 Nature and Function of Securities Markets (Cont.) • In real world, prices that approach the true equilibrium is best we can hope for • Security markets are organized to bring buyers and sellers together, so both parties will be satisfied that a fair transaction price has been arranged • Auction Market – Buyers and sellers confront each other directly to set the price – Either a single trade between all parties at a single price or a series of trades at different prices Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 6-4 Nature and Function of Securities Markets (Cont.) • Auction Market (Cont.) – Particular rules of the auction determine exactly how buyers and sellers are matched up. – All buy/sell orders are centralized so highest bidders and lowest offers are exposed to each other – Most popular example of a securities auction market is the New York Stock Exchange • Posts—Specific locations where auctions for individual securities take place • .

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Securities markets
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation