PK09Word格式.docx

PK09Word格式.docx

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1.Listanddescribethefourtypesofsecondarymarkets.

2.Explainwhymanyfinancialanalyststreatpreferredstockasaspecialtypeofbondratherthanasatrueequitysecurity.

3.Describehowthegeneraldividend-valuationmodelvaluesashareofstock.

4.Discusstheassumptionsthatarenecessarytomakethegeneraldividend-valuationmodeleasiertouse,andbeabletousethemodeltocomputethevalueofafirm’sstock.

5.ExplainwhygmustbelessthanRintheconstant-growthdividendmodel.

6.Explainhowvaluingapreferredstockwithastatedmaturitydiffersfromvaluingapreferredstockwithnomaturitydate,andbeabletocalculatethepriceofashareofpreferredstockunderbothconditions.

I.ChapterOutline

9.1TheMarketforStocks

∙Equitysecuritiesarecertificatesofownershipofacorporation.

∙Householdsdominatetheholdingsofequitysecurities,owningmorethan36percentofoutstandingcorporateequities.

A.SecondaryMarkets

∙Insecondarymarkets,outstandingsharesofstockareboughtandsoldamonginvestors.

∙Anactivesecondarymarketenablesfirmstoselltheirnewdebtorequityissuesatalowerfundingcostthanfirmssellingsimilarsecuritiesthathavenosecondarymarket.

B.SecondaryMarketsandTheirEfficiency

∙IntheUnitedStates,mostsecondarymarkettransactionsareconductedononeofthemanystockexchanges.

▪Intermsoftotalvolumeofactivityandtotalcapitalizationofthefirmslisted,theNYSEisthelargestintheworldandNASDAQisthesecondlargest.

▪Intermsofthenumberofcompanieslistedandsharestradedonadailybasis,NASDAQislargerthantheNYSE.

▪FirmslistedontheNYSEtendtobe,onaverage,largerinsizeandtheirsharestrademorefrequentlythanfirmswhosesecuritiestradeonNASDAQ.

∙Therearefourtypesofsecondarymarkets,andeachtypediffersaccordingtotheamountofpriceinformationavailabletoinvestors,whichinturn,affectstheefficiencyofthemarket.

1.DirectSearch

▪Thesecondarymarketsfarthestfromouridealofcompletepriceinformationarethoseinwhichbuyerandsellermustseekeachotheroutdirectly.

▪Itistoocostlytoperformathoroughsearchamongallpossiblepartnersdonetolocatethebestprice.

▪Securitiesthatsellindirectsearchmarketsareusuallyboughtandsoldsoinfrequentlythatnothirdparty,suchasabrokerordealer,findsitprofitabletoservethemarket.

▪Thesalesofcommonstockofsmallprivatecompaniesandprivateplacementtransactionsaregoodexamplesofdirectsearchmarkets.

2.Broker

▪Brokersbringbuyersandsellerstogethertoearnafee,calledacommission.

▪Brokers’extensivecontactsprovidethemwithapoolofpriceinformationthatindividualinvestorscouldnoteconomicallyduplicatethemselves.

▪Bychargingacommissionfeelessthanthecostofdirectsearch,brokersgiveinvestorsanincentivetomakeuseoftheinformationbyhiringthemasbrokers.

3.Dealer

▪Marketefficiencyisimprovedifthereissomeoneinthemarketplacetoprovidecontinuousbidding（sellingorbuying）forthesecurity.

▪Dealersprovidethisservicebyholdinginventoriesofsecurities,whichtheyown,thenbuyingandsellingfromtheinventorytoearnaprofit.

▪Dealersearntheirprofitsfromthespreadonthesecuritiestheytrade—thedifferencebetweentheirbidprice（thepriceatwhichtheybuy）andtheirofferprice（thepriceatwhichtheysell）.

▪Theadvantageofadealeroverabrokeredmarketisthatbrokerscannotguaranteethatanorderwillbeexecutedpromptly,whiledealerscanbecausetheyhaveaninventoryofsecurities.

▪Adealermarketeliminatestheneedforatime-consumingsearchforafairdealbybuyingandsellingimmediatelyfromthedealers’inventoryofsecurities.

▪NASDAQisthebest-knownexampleofadealermarket.

▪Electroniccommunicationsnetwork（ECN）systemsprovideadditionalpriceinformationtoinvestorsandincreasemarketabilityandcompetition,whichshouldimproveNASDAQefficiency.

4.Auction

▪Inanauctionmarket,buyersandsellersconfronteachotherdirectlyandbargainoverprice.

▪TheNewYorkStockExchangeisthebest-knownexampleofanauctionmarket.

▪IntheNYSEtheauctionforasecuritytakesplaceataspecificlocationontheflooroftheexchange,calledapost.

▪Theauctioneerinthiscaseisthespecialistwhoisdesignatedbytheexchangetorepresentordersplacedbypubliccustomers.

C.ReadingtheStockMarketListings

∙TheWallStreetJournal,theNewYorkTimes,andothernewspapersinlargemetropolitanareasprovidestocklistingsforthemajorstockexchanges,suchastheNYSEandtherelevantregionalexchanges.

∙Exhibit9.1showsasectionofthelistingintheWallStreetJournalfortheNYSE.

D.TypesofEquitySecurities

∙Thetwotypesofequitysec