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I The Capital Market II The Role of Market Makers

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主要的资本市场工具是股票、抵押贷款、公司债券、政府及政府机构债券以及地方政府债券。

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The Capital Market

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Stocks

Stocks are equity claims representing ownership of the net income and assets of a corporation

股票：代表对公司净资产和收入的所有权的权益索取权。the income that stockholders receive is called

dividends preferred stock pays a fixed dividend common stock pays a variable dividend

depends on the profit left over after preferred stockholders have been paid and retained earnings set aside

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Stocks

Several stock indexes measure the overall movement of common stock pricesDow Jones Industrial AverageStandard & Poor’s 500 Stock Index上证综指、深圳成指

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Mortgages Mortgages are loans to purchase single- or

multiple-family residential housing, land, or other real structures

抵押贷款：用于购买家庭住房、土地或其他不动产，并由该建筑物或土地作为抵押的贷款。the structure serves as collateral for the loanthere are two government-sponsored enterprises that

sell bonds and use the proceeds to purchase mortgages Federal National Mortgage Association (Fannie Mae) Federal Home Loan Mortgage Corporation (Freddie Mac)

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Corporate Bonds

Corporate bonds are long-term bonds issued by corporations usually with excellent credit ratings

公司债券：公司发行的长期债务工具。maturities range from 2 to 30 yearsthe owner receives an interest payment twice a

year and the principal at maturity

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Government Securities

government securities are long-term debt instruments with maturities of 2 to up to 30 years

政府债券：政府发放的长期债务工具，期限在 2-30年。issued by the Treasury to finance the deficits of the

governmentnotes have an original maturity of 2 to 10 yearsbonds have an original maturity between 10 and 30

years

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Government Agency Securities

government agency securities are long-term bonds issued by various government agenciessome are guaranteed by the federal

government and some are not

政府机构债券：由支持不动产借贷及学生贷款的不同政府机构发行的长期债务工具。

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State and Local Government Bonds (Municipals)

State and local government bonds (municipals) are long-term instruments issued by state and local governments to finance expenditures on schools, roads, college dorms, etc.

州及地方政府债券 / 市政债券：州及地方政府为修建学校、道路等融资而发放的长期债务工具。interest payments are exempt from federal income taxes

and from state taxes for investors living in the issuing state

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State and Local Government Bonds (Municipals)

Payments are generally secured in one of two waysrevenue bonds are used to finance specific projects and

the proceeds of those projects are used to pay off the bondholders

收入债券：用于特定项目的融资、其项目的后期收入作为债券持有者的收益的债券。

general obligation bonds are backed by the full faith and credit of the issuer

一般义务债券：由债券发行者的全部信用做保证，由一般性收入偿还的债券。 taxes can be raised to pay the interest and principal on general

obligation bonds

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The Role of Market Makers

The participants in financial markets are the buyers, sellers, and market makers

做市商：连接金融工具买卖双方的中间人，有时也代理执行买卖双方的交易。market makers function as coordinators who link up

buyers and sellers of financial instruments arrange and execute trades between buyers and sellers make markets in one type of security or several different types

of securities

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The Role of Market Makers

A broker arranges trades between buyers and sellers

A dealer (in addition to arranging trades) stands ready to be a principal in a transactionstands ready to purchase and hold securities sold by

investorscarries an inventory of securities and sells them to other

investors

经纪人：为买卖双方安排交易的人。交易商：为买卖双方安排交易，也可以成为主要交易者。

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The Role of Market Makers

A market maker helps to maintain a smoothly functioning, orderly financial marketif a short-term imbalance occurs between the

quantity of a security demanded and the quantity supplied, the market maker may increase or decrease his inventory to ensure that there is a buyer for every seller and a seller for every buyer

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Why Market Makers Make Markets

The willingness of a market maker to make a market for a particular security will be a function of the expected profits and risks associated with buying, selling, and holding that type of security

Generally, a market maker charges a brokerage fee of a commission for each transaction

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Why Market Makers Make Markets

Market makers also collect a fee in some markets by buying a particular security at one price – the bid price – and selling it at a higher price – the asked price

买方价格：做市商愿意在此价格上购买证券。 卖方要价：做市商愿意在此价格上出售证券。

the revenue received by the market maker is a function of the spread between these two prices and the number of transactions in which the market maker and the public engage

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Market Makers

MARKET MAKERS

Assist in raising funds to finance deficits by marketing a borrower’s new securities in the

primary market

Advise potential buyers and sellers of securities on the course of action likely to minimize costs and maximize returns

Stand ready to buy or sell outstanding securities in the secondary market

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The Marketing and Subsequent Trading of a Corporate Bond

A company wants to issue bonds to finance investment

Merrill Lynch sells “used” APEI bonds to another SSU

Secondary Market Activity

Merrill Lynch makes a market in A company bonds by buying bonds from SSUs

One year later SSUs (or financial intermediaries) decide to sell some of their A company bonds

SSUs and financial intermediaries buy A company bonds that will mature in 20 years

Primary Market Activity

Merrill Lynch agrees (for a fee) to design a bond offering and to market (sell) the bonds

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Market Making and Liquidity

The quality and cost of services provided by market makers affect the transactions costs associated with buying or selling various securities

The costs and convenience associated with trading particular securities, in turn, affect the liquidity of these securities

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substitutability, market making ,and market integration

The exchange of lower-yielding securities for a higher yielding one is the essence of substitution.

Most domestic financial markets have a comparable foreign market, such as a foreign stock market, market makers have assisted in integrating domestic and foreign financial markets( 大多数国内金融市场都有类似的国外市场，比如国外股票市场。做市商有助于促进国内外金融市场一体化。 )

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做市商是起联系金融市场上的证券买卖双方的专业人员，起协调作用。他们有三种重要功能：

（ 1 ）向买卖双方传递市场信息； （ 2 ）通过自己在不同市场买入、卖出证券将各

个不同的市场联系起来； （ 3 ）提供决定一级和二级市场质量的金融服务；

相应地，一级和二级市场的质量会影响赤字弥补、盈余借出——更广泛意义上的——不同金融工具流入和流出的难易程度。