公司理财经典教程(英文版)(ppt47页)资料.ppt

1-* Separation of Ownership and Control Board of Directors Management Assets Debt Equity Shareholders Debtholders 1-* Do Shareholders ControlManagerial Behavior? Shareholders vote for the board of directors, who in turn hire the management team. Contracts can be carefully constructed to be incentive compatible. There is a market for managerial talent—this may provide market discipline to the managers—they can be replaced. If the managers fail to maximize share price, they may be replaced in a hostile takeover. 1-* 1.5 Financial Markets The financial markets are composed of the money markets and the capital markets. Money markets are the markets for debt securities that will pay off in the short term( usually less than one year). Capital markets are the markets for long-term debt (with a maturity at over one year) and for equity shares. 1-* 1.5 Financial Markets The financial markets can be classified further as the primary market and the secondary markets. Primary Market When a corporation issues securities, cash flows from investors to the firm. Usually an underwriter is involved Secondary Markets Involve the sale of “used” securities from one investor to another . There are two kinds of secondary markets: the auction markets and the dealer markets. The equity securities of most large U.S firms trade in organized auction markets such as the New York Stock Exchange (NYSE),the American Stock Exchange Most debt securities are traded in dealer markets. Securities may be exchange traded or trade over-the-counter in a dealer market. 1-* Financial Markets Firms Investors Secondary Market money securities Sue Bob Stocks and Bonds Money Primary Market 1-* Exchange Trading of Listed Stocks Auction markets are different from dealer markets in two ways: Trading in a given auction exchange takes place at a single site on the floor of the exchange. Transaction prices of shares are communicated almost immediately to the public. 1-* 1.6 Outline of the Text Overview Va