copyright © 2000 addison wesley longman slide #21-1 chapter twenty one securities markets and firms
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Copyright © 2000 Addison Wesley Longman Slide #21-3TRANSCRIPT
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Copyright © 2000 Addison Wesley Longman Slide #21-1
Chapter Twenty One
SECURITIES MARKETS AND FIRMS
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Underwriting Stocks and BondsGiving Advice
When to offer?At what price?
Filing DocumentsSECRegistration statementProspectus
UnderwritingSyndicate
Marketing OutcomesFully subscribed UndersubscribedOversubscribed
Best Efforts
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Copyright © 2000 Addison Wesley Longman Slide #21-3
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Ten Largest Underwriters in the U.S.
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Securities Brokers and DealersBrokerage Service
Securities Orders Market OrderLimit Order
Other ServicesMargin Credit
Full-Service BrokersDiscount Brokers
Securities DealersMarket Makers
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Types of Investment Funds
Balanced FundsBond FundsValue FundsGrowth FundsGrowth and Income FundsIndex FundsMoney Market Mutual Funds
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Mutual Funds on the Rise
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Distribution of Mutual Fund Net Assets by Type of Fund
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Household Ownership of Mutual Funds
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Fee Structure of Investment Funds
Open-End FundClosed-End Fund
Load FundsNo-Load Funds
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Calculating a Mutual Fund’s Net Asset Value
Net Asset Value (NAV)Definition: Total value of the mutual fund’s stocks,
bonds, cash, and other assets minus any liabilities such as accrued fees, divided by the number of shares outstanding.
Stocks $35,000,000Bonds $15,000,000Cash $3,000,000
Total value of assets $53,000,000Liabilities -$800,000
Net worth $52,200,000Outstanding shares 15 millionNAV = $52,200,000/15,000,000 = $3.48
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Hedge Funds1. Take advantage of unusual spreads between security prices2. Often highly leveraged 3. Relatively unregulated