WM Lect 4 Wk 5_Securities Transacting and Borrowing_Jessica

WM Lect 4 Wk 5_Securities Transacting and Borrowing_Jessica...

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Wealth Management FINS2643 Lecture 4 Week 5 Securities Transacting and Borrowing Lecture 4 Summary Share Purchase Plan - common in recent months, not tradable, lead to dilution to existing ownership Homework Tutorial 5 Chapter 5 Question 5.9 List and discuss the types of securities markets. Money Markets Short term securities Capital Markets Medium to longer-term securities including: o Equity market o Corporate debt market o FX market o Derivatives markets Primary Markets New issues of securities IPO/float or seasoned offering Private/public offerings Secondary Markets Securities traded after issue consists of: o Organised securities exchanges: ASX, SFE o OTC Markets: Shares, bonds, forwards, many options, most CFDs, most currency Question 5.10 What are the roles of the ASX? Market rules Listing rules Monitor insider trading Provision of information Question 5.11 What are the roles of the dealers? Making markets JESSICA YANG 1
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Facilitating negotiations
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Unformatted text preview: Question 5.12 Who are the regulators of the Australian securities market? Discuss their importance. • ASIC – Administers corporations act • ACCC – Protect competition in the market and prevents misleading and deceptive conduct from occurring • ASX – See above • SFE – Licensing, registration, inspection of operations of SFE Question 5.14 In executing trades, what types of orders can be placed? • Market order – buy or sell at best price • Limit order – buy or sell at or below/above a specified price • Stop-loss order – automatic sell if prices drop enough Question 5.15 Discuss margin trading • Margin trading involves using borrowed money to make security purchases and to magnify returns on the investment • When profits occur, the financial leverage arising in the margin trade generates a higher return on equity as opposed to un-margined investments Chapter 13 JESSICA YANG 3...
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This note was uploaded on 04/02/2012 for the course FINS 2643 taught by Professor Fong during the Three '10 term at University of New South Wales.

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WM Lect 4 Wk 5_Securities Transacting and Borrowing_Jessica...

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