韩山师范学院财务管理课件第十四章 Capital Markets.ppt

Chapter 14 Capital Markets Chapter 14 - Outline LT 14-1 Capital Markets vs. Money Markets Government Securities Corporate Securities Organized Stock Exchanges Over-the-Counter Market Regulation of the Securities Markets Capital Markets vs.Money Markets LT 14-2 Capital Markets are where L/T securities with maturities greater than 1 year are traded ex., common stock, preferred stock, bonds, and convertible securities Money Markets are where S/T securities with maturities less than 1 year are traded ex., T-Bills, commercial paper, negotiable CDs Government Securities U.S. Government Securities – due to recent budget surpluses, U.S. Treasury has been repurchasing outstanding debt and reducing government borrowing Federally Sponsored Credit Agencies – issued separately from those sold directly by U.S. Treasury State and Local Securities – referred to as municipal securities and are exempt from federal income taxes Corporate Securities LT 14-4 Corporate Bonds – most widely used form of financing in recent years – corporations rely mainly on bonds over other securities Preferred Stock – least used of all L/T corporate securities Common Stock – represents a small percentage of L/T financing – not a very important source of funds Organized Stock Exchanges LT 14-5 New York Stock Exchange (NYSE) – largest and most important market for stocks in U.S. – strict requirements in order for a firm to be traded here American Stock Exchange (AMEX) – national exchange but less significant than NYSE – also located in New York City Regional Stock Exchanges – smaller exchanges located in cities like Chicago and Boston – account for a very small percentage of trading Over-the-Counter Market LT 14-6 Over-the-Counter Market (OTC) –has no central location – is a network of dealers connected by computer terminals and telephones – bulk of all bond trading is done OTC – largest market for total $ volume of securities – supervised by the National A