TopicTwo-精.pptVIP

Topic Two Financial Assets (Instruments) (金融资产) Real assets: a physically observable, or touchable, item. Financial assets: and assets that represents a promise to distribution cash flows at some time in the future. Debt(债券): Equity(证券): Derivative(衍生产品): Major Financial Instruments Financial Instruments and the Firm’s Balance Sheet Firm’s activities: Issue financial instruments (debt, or equity) to raise funds; Invest in real assets to generate positive returns (income); Hedge (insure) against risk by derivatives. Financial Instruments and the Firm’s Balance Sheet Common equity: common stock + paid-in capital + retained earnings ? book value(账面价值) Book value: a companys common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets. This is how much the company would have left over in assets if it went out of business immediately. Since companies are usually expected to grow and generate more profits in the future, market capitalization is higher than book value for most companies. Since book value is a more accurate measure of valuation for companies which arent growing quickly, book value is of more interest to value investors than growth investors. Financial Instruments and the Firm’s Balance Sheet Par value(面值): the nominal or face value of a stock or bond. Retained earnings(保留盈余): the balance sheet account that indicates the total amount of earnings the firm has not paid out as dividends throughout its history. These earnings have been reinvested in the firm. Additional paid-in capital(额外投入资本): the difference between the value of newly issued stock and its par value. Financial Instruments and the Firm’s Balance Sheet Debt: a loan to an individual, company, or government. home mortgages, commercial paper, term loans, bonds, secured and unsecured notes, and marketable and nonmarketable debt, …. 债券: 是政府、金融机构、工商企业等机构直接向社会借债筹措资金时，向投资者发行，并且承诺按一定利率支付利息并按约定条件偿还本金的债权债务凭证。具有如下特征：偿还性