Equity概念与解释

Equity概念与解释

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Concept Explanation Market A market is the place where the buyers and the sellers are able to transfer their goods or services. Brokers Brokers help their clients buy and sell securities by finding counterparties to trades in a cost efficient manner. Block brokers help with the placement of Large trades. Typically, large trades are difficult to place without moving the market. Investment banks help corporations sell common stock, preferred stock, and debt securities to investors. Exchanges provide a venue whew traders can meet. Exchanges sometimes act as brokers by providing electronic order matching. Alternative trading systems (ATS serve the same trading function as exchanges but have no regulatory function, are also known as electronic communication networks (ECNs) or multilateral trading facilities (MTFs). Dealers trade by buying for or selling from their own inventory and thus provide liquidity in the market and profit primarily from the differences of buy and sell prices. Primary dealers Dealers that trade with central banks to affect the money supply. Broker-dealers Some dealers also act as brokers Securitizers Securitizers pool large amounts of securities or other assets together and sell interests in the pool to other investors. SPV/SPE be set up to buy firm assets to removes them from the firm’s balance sheet and increase their value by removing the risk. Depository Institutions institutions that absorb deposits by paying interest on customer deposits and provide transaction services on one hand, and then make loans with the deposits on the other hand. Insurance Companies Insurance companies collect insurance premiums in return for providing risk reduction to the insured. Moral hazard a kind of risk that occurs because the insured may take more risks once they are protected against losses. Adverse selection a kind of risk that occurs when those most likely to experience losses are the predominant buyers of insurance. Arbitrageurs intermediaries who seek to gain certain return without bearing any risk. Clearinghouses who act as buyers when customers want to sell assets and as sellers when customers want to buy assets, and thus limit counterparty risk. Custodians who improve market integrity by holding client securities and preventing their loss due to fraud or other events that affect the broker or investment manager. Financial Assets Security,Currency,Derivative contracts Real Assets Commodity,Real Estate Fixed income securities Securities that make sure the borrowed funds can be repaid,including bonds,notes,Bills,Commercial paper,Certificates of deposit,Repurchase agreements and Convertible debt Equity securities Securities that represent ownership in a firm,including Common stock,Preferred stock and Warrants Mutual funds are pooled investment vehicles in which investors can purchase shares, either from the fund itself (open-end funds) or in the secondary market (closed-end funds) Exchange-traded funds (ETFs) & exchange- traded notes (ETNs)
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Equity概念与解释

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