投资学英文版课件Ch 3 Securities markets.pptVIP

The SIPC is to preserve public confidence in the securities markets and industry. It does insure investors against losses arising from the failure of a brokerage firm. 中国，卖出证券是T+0,买进证券是T+1（最早第二天才能卖出）， * P19 * E. Delivery of Securities take delivery leave the securities with the broker To registered in the brokerage firm’s name (in the street name) Receive the stock certificates or bonds 5% 95% F. Cost of Investing Taxes—securities dealings Transfer fees; other miscellaneous fees Commission fees 1 2 3 Most obvious cost; Can be negotiable; The sale of borrowed securities in anticipation of a price decline; A contract for future delivery; F Short sale Other examples Magazine—subscription; Professionals—lawyer, engineer, teacher… Rationale for short sale Sell borrowed securities Buy back securities and return to his broker profits Characteristics A current sale with a contract for future delivery; Process of short sale: borrowed securities first then sell them (short sale) buy back securities and then return them Expect the decline of securities price Whose securities can be lent? If investors register his or her shares in a cash account, the brokerage firms cannot lend them to short sellers; If investors register their shares in a margin account, one part of the margin agreement permits the brokerage firms to lend the shares. A Covering the Short Sale空头回补、平仓 The proceeds of short sale are not remitted to sellers but are held by the broker. The proceeds will subsequently be used to repurchase the stock. Such repurchases are referred to a covering the short sale. Margin requirement Closing the Position After short-sellers buy the shares, the brokerage firms get them back and close the sellers’ position. Selling price minus purchasing price minus any other costs Figure 1.1 The Flow of Money and Certificates in a Short Sale seller The flow of money: $5 000 proceeds from the buyer (to broker); $3 000 margin from the shortseller (to broker); The certificates in