《财务管理》课程PPT教学课件（英文版）Chapter 14 Rising Capital in The Financial market

Ch 14- Rising Capital in The financial markets @2002 Prentice Hall. Inc

Ch. 14 - Rising Capital in The Financial Markets © 2002, Prentice Hall, Inc

0: What are SECURITIES? A: Financial assets that Investors purchase hoping to earn a high rate of return

Q: What are SECURITIES? A: Financial Assets that Investors purchase hoping to earn a high rate of return

Types of securities Treasury Bills and Treasury bonds Municipal bonds Corporate Bonds Preferred stocks · Common stocks Which of these are risKy? Which promise HIGH RETUrNS? Is there a relationship between RisK and return?

Types of Securities • Treasury Bills and Treasury Bonds • Municipal Bonds • Corporate Bonds • Preferred Stocks • Common Stocks Which of these are RISKY? Which promise HIGH RETURNS? Is there a relationship between RISK and RETURN?

Corporate Financing In 1999. over $400 billion in external corporate financing was raised From 1996 through 1999. capital has been raised through the following sources Corporate Bonds and Notes 75.3%0 equities 24.7

Corporate Financing Sources • In 1999, over $400 billion in external corporate financing was raised. • From 1996 through 1999, capital has been raised through the following sources: • Corporate Bonds and Notes 75.3% • Equities 24.7%

Movement of savings Direct Transfer of funds

Movement of Savings • Direct Transfer of Funds

Movement of savings Direct Transfer of funds saver

Movement of Savings • Direct Transfer of Funds saver

Movement of savings Direct Transfer of funds firm saver

Movement of Savings • Direct Transfer of Funds saver firm

Movement of savings Direct Transfer of funds cash firm saver

Movement of Savings • Direct Transfer of Funds cash saver firm

Movement of savings Direct Transfer of funds cash firm saver securities

Movement of Savings • Direct Transfer of Funds cash securities saver firm

Movement of savings Indirect Transfer using Investment Banker

Movement of Savings • Indirect Transfer using Investment Banker