businessborrowing(编辑修改稿)

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cial mortgages  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 21 Money and Capital Markets in Cyberspace  More information about business borrowing can be found at:       2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 22 Chapter Review  Introduction  Factors Affecting Business Activity in the Money and Capital Markets  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 23 Chapter Review  Characteristics of Corporate Notes and Bonds  Principal Features  Original Maturities  Call Privileges  Sinking Fund Provisions  Yields and Costs  The Signals that Corporate Bond Issues Send  The Most Common Types of Corporate Bonds  New Types of Corporate Notes and Bonds  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 24 Chapter Review  Investors in Corporate Bonds  The Secondary Market for Corporate Bonds  The Marketing of Corporate Notes and Bonds  The Public Sale of Bonds  Private Placements of Corporate Bonds  The Volume of Borrowing in the Corporate Bond Market  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 25 Chapter Review  Bank Loans to Business Firms  The Prime, or Base, Interest Rate  Commercial Mortgages  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 26 Money and Capital Markets 22 C h a p t e r Eighth Edition Financial Institutions and Instruments in a Global Marketplace Peter S. Rose Slide by YeeTien (Ted) FuCorporate Stock  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 27  Learning Objectives   To learn about the characteristics of mon and preferred corporate stock.  To understand the anization and operation of the stock market today.  To pare and contrast the roles and functions of the anized stock exchanges and the overthecounter market.  To explore the issue of market efficiency.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 28 Characteristics of Corporate Stock  All corporate stock represents an ownership interest in a corporation, conferring on the holder a number of rights as well as risks.  Common stock represents a residual claim against the assets of the issuing firm, entitling the owner to share in the earnings of the firm when it is profitable and to share in the market value (after all debts are paid) of the pany’s assets if it is liquidated.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 29 Characteristics of Corporate Stock  Preferred stock carries a stated annual dividend expressed as a percent of the stock’s par value.  Preferred stockholders have a prior claim over the firm’s assets and earnings relative to the claims of mon stockholders, although creditors must still be paid first.  Preferred shares generally provide less ine but are less risky than mon stock.  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 30 Stock Market Investors 22 Data Source: Board of Governors of the Federal Reserve System  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 31 Recent Movements in Common Stock Prices 05001 , 0 0 01 , 5 0 02 , 0 0 02 , 5 0 03 , 0 0 03 , 5 0 04 , 0 0 01971 1976 1981 1986 1991 1996 202002 , 0 0 04 , 0 0 06 , 0 0 08 , 0 0 01 0 , 0 0 01 2 , 0 0 0N Y SE C o m p o s i t eSamp。 P 5 0 0N a s d a q c o m p o s i t eD J I AData Source: Economic Report of the President DJIA NYSE / Samp。 P / Nasdaq  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 32 Recent Movements in Common Stock Yields 02468101214161971 1976 1981 1986 1991 1996 2020D i v i d e n d p ri c e ra t i oEa rn i n g s p ri c e ra t i oData Source: Economic Report of the President %  2020 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 21 33 Characteristics of the Corporate Stock Market  There are two main branches of the market for trading corporate stock. Organized exchanges – Trading is governed by regulations and fo。