《投资分析与组合管理 Frank K. Reilly》ch04.pptVIP

Lecture Presentation Software to accompanyInvestment Analysis and Portfolio ManagementSeventh Editionby Frank K. Reilly Keith C. Brown Chapter 4 Organization and Functioning of Securities Markets Questions to be answered: What is the purpose and function of a market? What are the characteristics that determine the quality of a market? What is the difference between a primary and secondary capital market and how do these markets support each other? Chapter 4 Organization and Functioning of Securities Markets What are the national exchanges and how are the major security markets becoming linked (what is meant by “passing the book”)? What are the regional stock exchanges and the over-the-counter (OTC) market? What are the alternative market-making arrangements available on the exchanges and the OCT market? Chapter 4 Organization and Functioning of Securities Markets What are the major types of orders available to investors and market makers? What are the major functions of a specialist on the NYSE and how does the specialist differ from the central market maker on other exchanges? What are the major factors that have caused the significant changes in markets around the world in the past 10 to 15 years? Chapter 4 Organization and Functioning of Securities Markets What are some of the major changes in world capital markets expected over the next decade? What is a market? Brings buyers and sellers together to aid in the transfer of goods and services Does not require a physical location Both buyers and sellers benefit from the market Characteristics of a Good Market Availability of past transaction information must be timely and accurate Liquidity marketability price continuity depth Low Transaction costs Rapid adjustment of prices to new information Organization of the Securities Market Primary markets Market where new securities are sold and funds go to issuing unit Secondary markets Market where outstanding securities are bought and sold by investors. The