资料内容教程案例教案ch01.pptx

Investments: Background and Issues;The performance of China’s stock market during 04/07/2005-13/01/2021 (daily K line);The performance of China’s stock market during 2005-2018 (monthly K line);What happened in China’s stock market in 2015?;The performance of China’s stock market during 2015-2016;The performance of China’s stock market in 2018;The performance of China’s stock market in 2019;The performance of China’s stock market in 2020; Investment versus Speculation ;1.1 Real versus Financial Assets;Table 1.1 Balance Sheet, U.S. Households, 2011;1.1 Financial Assets = Financial Liabilities;Table 1.2 Domestic Net Worth, 2014;1.2 Financial Assets;1.3 Financial Markets and the Economy;Consumption Timing Consumption smoothes over time When current basic needs are met, shift consumption through time by investing surplus;Risk Allocation Investors can choose desired risk level Bond vs. stock of company Bank CD vs. company bond Is there always a Risk/Expected Return trade-off? ;Separation of Ownership and Management Large size of firms requires separate principals and agents Separation ? Agency Problems Mitigating Factors Performance-based compensation Boards of directors may fire managers Threat of takeovers;Agency Problems: Example 1.1 In February 2008, Microsoft offered to buy Yahoo at $31 per share when Yahoo was trading at $19.18 Yahoo rejected the offer, holding out for $37 a share Proxy fight to seize control of Yahoos board and force Yahoo to accept offer Proxy failed; Yahoo stock fell from $29 to $21 Did Yahoo managers act in the best interests of their shareholders?;Corporate Governance and Corporate Ethics Businesses and markets require trust to operate efficiently Without trust additional laws and regulations are required Laws and regulations are costly Governance and ethics failures cost the economy billions, if not trillions Eroding public support and confidence;Corporate Governance and Corporate Ethics Accounting scandals Enron, WorldCom, Rite-