1 Financial Management Didi Sundiman didi.unda.ac.id Hp
2 Chapter 2: Financial Markets and Institutions
3 OBJECTIVES Identify types of financial markets & institutions and Different types of stock markets. Explain how the stock market has performed in recent years. why some markets are more efficient than others.
4 THE CAPITAL ALLOCATION PROCESS
5 CLASSIFY MARKETS Physical asset markets versus financial asset markets Spot markets versus futures markets. Money markets versus capital markets. Primary markets versus secondary markets. Private markets versus public markets.
7 THE STOCK MARKET the most active secondary market—and the most important Physical location exchanges, NYSE, the American Stock Exchange (AMEX) electronic dealer-based markets, which include the Nasdaq
8 THE MARKET FOR COMMON STOCK Outstanding shares of established : the secondary market. Additional shares sold Initial public offerings
9 STOCK MARKETS AND RETURNS expected and realized Stock Market Reporting: The Wall Street Journal Stock Market Returns, next