chapter-5-Financial-Market教学课件.pptVIP

5.3 Capital Market The classification of capital markets. 1. Primary and secondary market 2. Public offering and private placement 3. Listing and OTC dealing 5.3.1 Primary and Secondary Market The definition of underwriting. Underwriting simply means that the investment banker promises to buy the securities, which is typically done through syndication. The definition of a firm commitment underwriting. When the investment banks buy the entire new issue from the issuer at a discount to resell it at a markup, it is called a firm commitment underwriting. 5.3.1 Primary and Secondary Market The definition of secondary market. It is a financial market in which securities that have been previously issued (and thus secondhand) can be resold. 5.3.3 Listing and OTC Dealing The characteristics of the OTC market. In the OTC market, trading occurs via a network of middlemen, called dealers, who carry inventories of securities to facilitate the buy and sell orders of investors, rather than providing the order matchmaking service seen in specialist exchanges such as the NYSE. Main Components of the International Capital Market International Bond Market The international bond market consists of all bonds sold by issuing companies, governments, or other organizations outside their own countries. Main Components of the International Capital Market Types of International Bonds Eurobond – bond issued outside the country in whose currency it is denominated. Foreign bond – bond sold outside the borrower’s country and denominated in the currency of the country in which it is sold. Main Components of the International Capital Market Interest Rate : A Driving Force Today, low interest rates (the cost of borrowing) are fueling growth in the international bond market. Low interest rates in developed nations are resulting from low levels of inflation, but also mean that investors earn little interest on bonds issued by governments and companies in domestic ma