Investment
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• The commitment of current resources in the expectation of deriving
greater resources in the future
alpha
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stock's expected excess return if market factor is neutral
governments
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can be both borrowers and savers
depends on the relationship between tax revenue and government
expenditures
secondary market
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preexisting securities traded among investors
Issuing firm doesn't receive proceeds, is not directly involved
Seasoned equity offering (SEO)
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Issuer sells additional units of a previously issued security
NYSE (New York Stock Exchange)
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The largest stock market based on market capitalization and is floor based.
Exchanges in secondary markets where already issued securities are
bought and sold
market capitalization weighted index
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can be matched with a portfolio in which the value of each security
position in the portfolio is the same proportion of the total portfolio value
as the proportion of that security's market capitalization to the total market
capitalization of all of the securities included in the index
return index
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includes both prices and income from the constituent securities
financial assets
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, claims on real assets or the income generated by them
- fixed-income (debt) securites
- equity
- derivative securities
Direct Listing
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An alternative to traditional IPOs
A previously private company floats existing shares on the stock market but
doesn't raise funds by issuing new shares to the public
saves the cost of IPOs
corporate bonds
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long term debt issued by corporations
• Semi-annual interest payments
• Investment grade vs. speculative grade
• Larger default risk than government securities (differences among
secured, unsecured, and subordinated)
• Allows for Options
• Callable
• Convertible
Financial markets
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Give this one a try later!
• The commitment of current resources in the expectation of deriving
greater resources in the future
alpha
,Give this one a try later!
stock's expected excess return if market factor is neutral
governments
Give this one a try later!
can be both borrowers and savers
depends on the relationship between tax revenue and government
expenditures
secondary market
Give this one a try later!
preexisting securities traded among investors
Issuing firm doesn't receive proceeds, is not directly involved
Seasoned equity offering (SEO)
Give this one a try later!
Issuer sells additional units of a previously issued security
NYSE (New York Stock Exchange)
,Give this one a try later!
The largest stock market based on market capitalization and is floor based.
Exchanges in secondary markets where already issued securities are
bought and sold
market capitalization weighted index
Give this one a try later!
can be matched with a portfolio in which the value of each security
position in the portfolio is the same proportion of the total portfolio value
as the proportion of that security's market capitalization to the total market
capitalization of all of the securities included in the index
return index
Give this one a try later!
includes both prices and income from the constituent securities
financial assets
Give this one a try later!
, claims on real assets or the income generated by them
- fixed-income (debt) securites
- equity
- derivative securities
Direct Listing
Give this one a try later!
An alternative to traditional IPOs
A previously private company floats existing shares on the stock market but
doesn't raise funds by issuing new shares to the public
saves the cost of IPOs
corporate bonds
Give this one a try later!
long term debt issued by corporations
• Semi-annual interest payments
• Investment grade vs. speculative grade
• Larger default risk than government securities (differences among
secured, unsecured, and subordinated)
• Allows for Options
• Callable
• Convertible
Financial markets
Give this one a try later!
