ppt_ch06a_new-1 Investors in the Share Market 外汇与外汇市场 教学课件.pptVIP

Chapter 6 Investors in the Share Market Websites: .au .au Learning Objectives Appreciate the range of investment choices available for the investor Identify relevant issues for potential investors Understand the factors that influence a company’s share price Chapter Organisation 6.1 Introduction 6.2 Stock Exchange Investment 6.3 Buying and Selling Shares 6.5 Financial Performance Indicators 6.6 Pricing of Shares 6.7 Stock Market Indices and Published Share Information 6.8 Summary 6.1 Introduction Recall from previous chapters Publicly listed corporation Primary and secondary markets Ordinary shares have the potential to provide a return to investors by way of dividends and capital gains Depth of the market The overall capitalisation of corporations listed on the stock exchange (SX) 6.1 Introduction (cont.) Liquidity The volume of trading relative to the size of the market i.e. turnover Efficient price discovery The speed and efficiency that new information is reflected in the current share price 6.2 Stock Exchange Investment The SX offers a wide range of security types to the investor Securities listed on the SX are categorised into industry groups allowing investors a choice within a range of economic sectors 6.2 Stock Exchange Investment (cont.) Two types of risk impact on security returns Systematic risk Factors that generally impact on shares prices in the market e.g. economic growth, and changes in interest rates and exchange rates Unsystematic risk Factors that specifically impact on the share price of a corporation e.g. resignation of the CEO, technology failure, board problems 6.2 Stock Exchange Investment (cont.) Diversified investment portfolio A portfolio containing a wide range of securities Diversifies away most of the unsystematic risk of the individual securities Therefore, investors will not receive higher returns for unnecessarily bearing unsystematic risk 62. Stock Exchange Investment (cont.) Diversified investment portfolio (cont.) The remai