TAILIEUCHUNG - Lecture Intermediate corporate finance – Chapter 1 (Web extension 1C): A closer look at the stock markets

Lecture Intermediate corporate finance – Chapter 1 (Web extension 1C): A closer look at the stock markets. This chapter presents the following content: Stock indexes, regulation, overview of investment banking, stock trading. | Chapter 1 Web Extension 1C A Closer Look at the Stock Markets Topics in Web Extension Stock indexes Regulation Overview of investment banking Stock trading Stock Indexes Stock indexes try to measure some aspect of the market The differ with respect to: Composition (types of stock in the index) Weighting (how the individual stocks are aggregated into an index) (More . .) Index Composition Replicate a particular exchange Measure a country’s most important stocks Measure a particular business sector Measure a particular investment “style” Measure an international region (More . .) Composition by Exchange NYSE Composite Nasdaq Composite (More . .) Composition by Business Sector Many different index providers, such as: Dow Jones Amex Morgan Stanley Many different sectors, such as: Airlines Biotechnology Chemicals Consumer retailers Technology Composition by “Style” Two important investment styles are by the size of the firm and by its growth prospects. Growth is measure by high-expected sales growth and high price-book ratios (value stocks have lower growth and lower price-book ratios) Examples: Russell 1000 Growth Russell Midcap Value Composition by International Region Morgan Stanley Capital International (MSCI) EAFE (Europe, Asia, Far East) Index Emerging Markets Index Pacific Index Stock Weighting in Indexes Price weighted DJIA Market-value weighted S&P500 Nasdaq Composite Equally weighted Value Line Index Regulation of Securities Markets Government Regulation– such as SEC. Insider trading oversight (SEC) Margin oversight (Federal Reserve) Self-regulation– such as NASD. Circuit Breakers– automatic halt in trading if stock prices have exceptional changes. Public vs. Private Offerings Public offerings: registered with the SEC and sale is made to the investing public. Shelf registration (Rule 415, since 1982) allows firms to register an offering and sell parts of the offering over time. Private offering: Sale to a limited number of .

• Kế toán - Kiểm toán
• Intermediate corporate finance
• Corporate finance
• Lecture Intermediate corporate finance
• Tài chính doanh nghiệp
• Financial management
• The stock markets
• Corporate valuation
• Value based management
• Financial reporting
• Social welfare
• Forward contracts
• Basic return concepts
• Portfolio theory
• Bond valuation
• Basic stock valuation
• Accounting for financial management
• Analysis of financial statements
• Financial planning
• Forecasting financial statements
• Capital budgeting
• Decision criteria
• Estimating cash flows
• Real options
• Capital structure decisions