Chapter Twenty One Investment Banks, Brokerage Firms, and Mutual Funds.

Slides:



Advertisements
Similar presentations
CHAPTER 4: INVESTMENT COMPANIES.  Definition: financial intermediaries that collect funds from individual investors and invest those funds in a potentially.
Advertisements

Copyright © 2012 Pearson Prentice Hall. All rights reserved. CHAPTER 22 Investment Banks, Security Brokers and Dealers, and Venture Capital Firms.
Chapter 23 Investment Banks and Security Brokers and Dealers.
Securities Firms (ch21) – Fin Securities Firms Investment Banking Business Brokage Service Investment Funds –Mutual Funds –Hedge Funds.
13 Investing in Mutual Funds Mutual Fund = an investment vehicle offered by investment companies to those who wish to: –Pool money –Buy stocks, bonds,
Bonds & Mutual Funds Chapter 10.
Securities Firms (I) (ch21) – Fin Securities Firms (I) – Investment Funds Security Firm Overview Mutual Funds Overview Funds Types Fee Structure.
McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.
McGraw-Hill /Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Seventeen Mutual Funds.
Chapter 21 The Mutual Fund Industry. Copyright © 2006 Pearson Addison-Wesley. All rights reserved Chapter Preview We study why mutual funds have.
Copyright © 2012 Pearson Prentice Hall. All rights reserved. CHAPTER 20 The Mutual Fund Industry.
3-1 Chapter 3 Financial Intermediaries. 3-2 Deficit Sectors Financial Intermediaries Claims Surplus Sectors $ Claims $$
Investment Companies  What are they?  Financial intermediaries that invest the funds of individual investors in securities or other assets.
Chapter 13 Nonbank Finance. © 2013 Pearson Education, Inc. All rights reserved.13-2 Insurance Life insurance –Permanent (whole, universal, and variable)
Investment Companies Investment companies are financial intermediaries that sell shares to the public ad invest the proceeds in a diversified portfolio.
Slide 21–1. Chapter Twenty One Investment Banks, Brokerage Firms, and Mutual Funds.
Chapter 5 How Securities Are Traded. Brokerage firms earn commissions on executed trades, sales loads on mutual funds, profits from securities sold from.
CHAPTER 20 Investment Companies. Copyright© 2003 John Wiley and Sons, Inc. Investment Funds Purchase direct, long term, capital market securities and.
Copyright  2002 by Harcourt, Inc. All rights reserved. CHAPTER 13: INVESTING IN MUTUAL FUNDS Clip Art  2001 Microsoft Corporation. All rights reserved.
Chapter 14 Investing in Mutual Funds Copyright © 2012 Pearson Canada Inc
Learning Objective # 1 Describe the characteristics of mutual funds. LO#1.
Securities Firms (I) (ch23) – BUS322 1 Securities Firms Mutual Funds Overview –Mutual Funds Basics –Performance Evaluations –Hedge Funds Underwriting Brokerage.
Chapter 20 Mutual Funds and Asset Allocation Lawrence J. Gitman Jeff Madura Introduction to Finance.
Chapter 13 Nonbank Finance. © 2016 Pearson Education, Inc. All rights reserved.13-2 Preview This chapter examines how institutions which engaged in nonbank.
CHAPTER 19 INVESTMENT BANKING. Copyright© 2003 John Wiley and Sons, Inc. Investment Banking Investment Banks (IB) are the most important participant in.
Copyright © 2010 Pearson Addison-Wesley. All rights reserved. Chapter 13 Nonbank Finance.
Mutual Funds. Objectives WHAT IS A MUTUAL FUND? HOW DO MUTUAL FUNDS OPERATE? HOW MUCH DOES MUTUAL FUND INVESTING COST? HOW SHOULD MUTUAL FUND PERFORMANCE.
Indirect Investing Chapter 3
MUTUAL FUNDS Investments Some Advantages to a Mutual Fund Reduce transaction costs for investors Shares can be purchased in small amounts Reduce.
Securities Firms, Mutual Funds, and Financial Conglomerates Chapter 20 © 2003 South-Western/Thomson Learning.
Indirect Investment. Introduction In Direct Investment, investors have control over the buying and selling of securities. In Indirect Investment, investors.
FINANCE IN A CANADIAN SETTING Sixth Canadian Edition Lusztig, Cleary, Schwab.
Mutual Funds and Other Investment Companies Chapter 4 Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Copyright © 2000 Addison Wesley Longman Slide #21-1 Chapter Twenty One SECURITIES MARKETS AND FIRMS.
Chapter 4 Mutual Funds and Other Investment Companies.
McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.
Investment Companies  Net Asset Value (NAV)  (Total portfolio value - liabilities) / # of shares  Management is usually contracted to an outside firm.
Firms and the Financial Market Chapter 2. Slide Contents 1. The Basic Structure of the U.S. Financial Markets 2. The Financial Marketplace – Financial.
Chapter 12 Buying and Selling Investments. Slide 2 What Are Sources of Investing Information? 12-1 Researching Investments and Markets Magazines Newspapers.
Mutual Funds and Other Investment Companies
Securities Firms (II) (ch21) – Fin Securities Firms (II): Other Businesses Investment Banking Business Brokage Service.
Brokers versus Mutual Funds n Objective: –Characteristics of a mutual fund. –Different players and roles in the buying and selling process. –Future of.
INVESTMENTS | BODIE, KANE, MARCUS Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 4 Mutual Funds and.
3-1 Chapter 3 Charles P. Jones, Investments: Analysis and Management, Tenth Edition, John Wiley & Sons Prepared by G.D. Koppenhaver, Iowa State University.
Chapter 14 Fundamentals of Corporate Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc.
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 3 How Securities are Traded.
CHAPTER 4 Investments Mutual Funds and Other Investment Companies Slides by Richard D. Johnson Copyright © 2008 by The McGraw-Hill Companies, Inc. All.
4 Mutual Funds and Other Investment Companies Bodie, Kane, and Marcus
 How Corporations Issue Securities Principles of Corporate Finance Brealey and Myers Sixth Edition Slides by Matthew Will Chapter 15 © The McGraw-Hill.
Mutual Funds and Other Investment Companies
Mutual Funds Explain the characteristics of mutual fund investments.
Chapter 4 Jones, Investments: Analysis and Management
MFIN 403 Financial Markets and Institutions
4. Mutual Funds, Investment Dealers, and Other FIs
How Corporations Issue Securities
Cleary / Jones Investments: Analysis and Management
Chapter 3 Jones, Investments: Analysis and Management
Review Fundamental analysis is about determining the value of an asset. The value of an asset is a function of its future dividends or cash flows. Dividends,
Stocks, Bonds, and Mutual Funds
Securities Markets Chapter 4
20 Mutual Funds and Asset Allocation Introduction to Finance Chapter
Lecture 2 Chapter 2 Outline The Financing Decision
Brokers versus Mutual Funds
Chapter 13 Nonbank Finance.
Indirect Investing Chapter 3
Lecture 4 MUTUAL FUNDS`.
Indirect Investing Chapter 3
Brokers versus Mutual Funds
Investment Banks, Security Brokers and Dealers, and Venture Capital Firms Lectur
Lecture 4 MUTUAL FUNDS`. Indirect investing Investing indirectly refers to the buying and selling of the shares of investment companies Instead of buying.
Presentation transcript:

Chapter Twenty One Investment Banks, Brokerage Firms, and Mutual Funds

Copyright © 2004 Pearson Education Canada Inc. Slide 21–2 Investment Banks Intermediaries that help corporations raise funds by selling securities in the financial markets Investment banks may underwrite a security issue

Copyright © 2004 Pearson Education Canada Inc. Slide 21–3 Underwriting Stocks and Bonds Giving Advice –When to offer? –At what price? Filing Documents –Exchange Commissions –Registration statement –Prospectus Underwriting –Syndicate Marketing Outcomes –Fully subscribed –Undersubscribed –Oversubscribed Best Efforts

Copyright © 2004 Pearson Education Canada Inc. Slide 21–4 Securities Brokers and Dealers Brokerage Service –Securities Orders Market Order Limit Order –Other Services Margin Credit Full-Service Brokers versus Discount Brokers Securities dealers hold securities and make a market

Copyright © 2004 Pearson Education Canada Inc. Slide 21–5 Mutual Funds Mutual funds pool the resources of many small investors by selling them shares and using the proceeds to buy securities

Copyright © 2004 Pearson Education Canada Inc. Slide 21–6 Mutual Fund Families (Complexes) Investment companies usually offer a number of different types of mutual funds Investors can often move investments among these funds without penalty The complexes often issue consolidated statements Mutual fund fact book

Copyright © 2004 Pearson Education Canada Inc. Slide 21–7 Fee Structure of Investment Funds Open-End Fund Closed-End Fund –Load Funds –No-Load Funds

Copyright © 2004 Pearson Education Canada Inc. Slide 21–8 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

Copyright © 2004 Pearson Education Canada Inc. Slide 21–9 Hedge Funds Take advantage of unusual spreads between security prices Often highly leveraged Relatively unregulated Figure 4: The Price of Two Similar Securities

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com. Inc. All rights reserved.