金融英語-3-corporate_finance_new

1、0,Part 3 Corporate Finance,主講：許寧xuning313@yahoo.cn,1,Latest Economic news,China central bank pledges more co-operation to stem global financial crisis 中國央行投入更多合作來遏制全球金融危機(jī),2,,BEIJING, Oct. 10 (Xinhua) -- China's c

2、entral bank on Friday said it will continue international cooperation to tackle the global financial crisis and maintain market stability. The pledge came two days after the People‘s Bank of China (PBOC) announced an in

3、terest rate cut in a co-ordinated（共同調(diào)整） global move to revive solvency（償付能力） in the international financial system.,3,,The PBOC on Wednesday cut the benchmark lending and deposit rates(存貸款基準(zhǔn)利率) by 0.27 percentage points

4、and the reserve requirement ratio by 0.5 percentage points amid growing fears of a slowing economy and falling equities market.,4,,"The PBOC will continue close contacts and cooperation with counterparts and interna

5、tional financial organizations to jointly maintain stability of global financial market," PBOC spokesman Li Chao told Xinhua.,5,,The PBOC would closely watch the developments and effects of the crisis and take timel

6、y and flexibly measures according to changes in the domestic and international situations to guard against financial risks, Li said.,6,,The global economic slowdown（放緩） reduced demand for Chinese exports and inevitably（不

7、可避免的） affected China's economy, he said. The central bank was fully confident and capable of dealing with the crisis and maintaining stable and relatively fast economic growth.,7,,“China has a huge domestic market a

8、nd the liquidity is abundant,” he said. “As long as we take strong measures to boost（推進(jìn)） domestic demand, the economy has big potential for sustainable（持續(xù)的） growth.",8,,A PBOC statement on the third-quarter meeting

9、of its monetary policy committee said it would take flexible and prudent（謹(jǐn)慎） macro-economic control measures to boost economic growth. The PBOC was not optimistic in its global economic outlook（展望） as intensifying （加強(qiáng)的）

10、fluctuations in the financial markets had affected the real economy.,9,,It said it would boost coordination between monetary policies and fiscal（財(cái)政）, industry, export and financial regulation policies to help transform e

11、conomic growth mode（方式） and boost domestic demand to balance international payments（國際支付）.,10,Chapter Outline,3.1 Venture capital3.2 Stocks and shares(1)3.3 Stocks and shares(2)3.4 Shareholders3.5 Share price3.

12、6 Describing charts and graphs3.7 Bonds3.8 Futures,11,Chapter Outline（2）,3.9 Derivatives3.10 Asset management3.11 Hedge funds and structures products3.12 Mergers and takeovers3.13 Conglomera

13、te3.14 Raiders3.15 Financial planning,12,3.1 Venture capital,3.1.1 raising capitalVenture capital = risk capital = start-up capital, means funds for new enterprises.New business, called start-ups, are all private

14、companies that aren’t allowed to sell stocks or shares to the general publics. In this case, venture capital can give a help. Some rich people, called angles or angel investors, also invest in star-ups.,13,3.1.2 Return

15、on capital,At first, entrepreneurs（企業(yè)家） should provide a business plan（商業(yè)計(jì)劃）.Because of the high level of risk involved, investors in start-ups usually expect a higher than average rate of return（回報(bào)率）. If they can’t get

16、 a quick return in cash, they can buy the new company’s shares.If the company is successful and later becomes a public company（上市公司）, the venture capitalists will be able to sell their shares, at a profit. This is exit

17、strategy（退出戰(zhàn)略）.,14,,If these companies need further capital to expand before they join a stock exchange. This is called mezzanine financing（二次融資）.It usually consists of convertible bonds（可轉(zhuǎn)換債券） or preference shares（優(yōu)先股）

18、 that receive a fixed dividend（固定股利）.Investors at this stage have a lower risk of loss than venture capitalist, but less chance of making a big profit.,15,3.2 Stocks and shares(1),Stocks and shares are certificates rep

19、resenting part ownership of a company.The word equity or equities is also used to describe stocks and shares.In Britain, stock is also used to refer to all kinds of securities（有價(jià)證券）, including government bonds.The pla

20、ce where stocks are bought and sold are called stock markets or stock exchange（股票交易所）.,16,3.2.1 Going public,Procedure of going public:Get advice from investment bank about how many shares to offer and at what price;Ge

21、t independent accountants to produce a due diligence report （盡職調(diào)查報(bào)告）;Produce a prospectus（公告書） to public;Make a flotation （浮選） or IPO (initial public offering);An investment bank underwrites the stock issue （承銷股票發(fā)行）.,

22、A detailed examination of a company and its financial situation,A document stating the terms of sale, financial results and other information about the company,An offer of a company’s shares to investors,Guarantees to b

23、uy the shares if there are not enough buyers,17,3.2.2 Ordinary and preference shares,Except the ordinary shares（普通股）, some companies also have preference shares whose holders receive a fixed dividend that must be paid be

24、fore holders of ordinary shares receive a dividend.If the company goes into liquidation（進(jìn)入清算）, holders of preference shares are repaid（償還） before other shareholders, but after owners of bonds and other debts.,18,3.3 St

25、ocks and shares(2),After newly issued shares have been sold for the first time---this is called the primary market（一級(jí)市場(chǎng)）, they can be repeatedly traded at the stock exchange on which the company is listed---this is calle

26、d the secondary market（二級(jí)市場(chǎng)）.Most companies use over-the-counter (OTC) markets, such as NASDAQ in New York and the Alternative Investment Market (AIM) in London.,19,3.3.1 Buying and selling shares(2),The nominal value（票

27、面價(jià)值） of a share is rarely the same as its market price（市場(chǎng)價(jià)值）.It can change every minute during trading hours, because it depends on supply and demand.Most customers place their buying and selling orders with a stockbro

28、ker（股票經(jīng)紀(jì)人）.Some stock exchange have computerized automatic trading systems（自動(dòng)交易系統(tǒng)）, others have market makers（做市商）: traders in stocks who quote bid and offer prices.,20,3.3.2 New share issues,Companies that require furt

29、her capital can issue new shares.Rights issue（增股）: the existing shareholders have the first right to buy new shares.Scrip issue（發(fā)紅利）: issue new shares to existing shareholders instead of paying them a dividend, also ca

30、lled capitalization issue, or bonus issue（紅利股）.Own shares（自持股）: buy back some their own shares on the secondary market.,21,3.3.3 Categories of stocks and shares,Blue chips（藍(lán)籌股）: stocks in large companies with a reputati

31、on for quantity, reliability and profitability.Growth stocks（增長(zhǎng)股）: be expected to rise regularly in value.Income stocks（收入股）: have a history of paying consistently high dividends.Defensive stocks（防御股）: provide a regul

32、ar dividend and stable earnings（穩(wěn)定收益）, not to rise or fall much.Value stocks（價(jià)值股）: nominal worth less than the real value.,22,Exercises：,1. A stock whose price has suddenly fallen a lot after a company had bad news coul

33、d be a value stock, as it will probably rise again.2. The stocks of food, tobacco and oil companies are usually defensive stocks, as demand doesn’t rise or fall very much in periods of economic expansion or contraction.

34、,,,23,,3. Pension funds and insurance companies, which can’t take risks, usually only invest in blue chips.4. The best way to make a profit in the long term is to invest in growth stocks.5. This stock used to be consid

35、ered an income stocks, but two years ago the company started to cut its dividend and reinvest its cash in the business.,,,,24,3.4 Shareholders,3.4.1 InvestorsInvestors in stock market are named by animals.Bulls: invest

36、ors who expect prices to rise;Bears: investors who expect them to fall;Stags（鹿）: investors who buy new share issues hoping that they will be over-subscribed（超額訂購）, and immediately sell them at a profit.,25,3.4.2 Specul

37、ators,Speculator（投機(jī)者）: people who buy and sell shares rapidly, hoping to make a profit.These include day traders（日交易者）, who buy stocks and sell them again before the settlement day.Day traders usually work with online

38、brokers （網(wǎng)上經(jīng)紀(jì)人）, who charge low commissions.Take a short position: 做空Take a long position: 做多,26,3.4.3 Dividends and capital gains,Companies that make a profit either pay a dividend to their stockholders, or retain the

39、ir earnings by keeping the profits in the company, which causes the value of stocks to rise.When an investor buys shares on the secondary market they are either cum div（帶息）, meaning the investor will receive the next di

40、vidend the company pays, or ex div （不帶息）, meaning they will not, but to sell their stocks to make a capital gain（資本收益）.,27,3.5 Share prices,Stock markets are measured by stock indexes（股指）, such as Dow Jones Industrial Av

41、erage (DJIA)（道瓊斯工業(yè)指數(shù)）.A period when most of the stocks on a market rise is called a bull market（牛市）; A period when most of them fall in value is a bear market（熊市）.When these indexes fall considerably on a single day,

42、the stock market crashes happen（崩盤）.,28,Latest Economic news,Citigroup posts another loss amid credit woes花旗集團(tuán)宣布在信用危機(jī)中的另一項(xiàng)損失 Thursday October 16, 8:16 am ET By Madlen Read, AP Business Writer,29,,NEW YORK (AP) -- Ci

43、tigroup Inc. suffered its fourth straight quarterly loss due to credit-related missteps（失誤） and cut another 11,000 jobs. The New York-based bank said Thursday that it lost $2.8 billion, or 60 cents per share, in the thi

44、rd quarter, compared with a profit of $2.2 billion, or 44 cents per share, a year ago.,30,,That deficit for the June-to-September period brings Citi's total losses over the past 12 months to $20.2 billion. The short

45、fall（赤字） for the quarter was narrower than anticipated. Analysts polled（調(diào)查） by Thomson Reuters（湯姆森 路透） expected a loss of 70 cents per share.,31,,“While our third quarter results reflect both a difficult environment as w

46、ell as continued write-downs（價(jià)值縮水，減記） on our legacy assets（遺留資產(chǎn)）, we are making excellent progress on the parts of our business we control, including expense reduction, headcount（員工總數(shù)）, and balance sheet and capital mana

47、gement," said CEO Vikram Pandit in a statement.,32,,The frailty（弱點(diǎn)） of the financial system has led the government to pledge $25 billion to each of the big four U.S. banks -- Citigroup, JPMorgan Chase & Co., Ban

48、k of America Corp. and Wells Fargo & Co（美國富國銀行）.,33,,Of these four institutions, Citi appears to be on the shakiest footing（最動(dòng)搖的基礎(chǔ)）. It is the only one to have posted quarterly losses over the past year, and it is sh

49、rinking while its peers are growing.,34,,Citi not only eliminated 11,000 jobs during the third quarter -- bringing its total headcount reduction so far this year to 23,000 -- but it also shed（流出） $50 billion in assets.,3

50、5,,Pandit announced in May that Citi intends to rid itself of（消除） nearly $500 billion in assets to get out of businesses such as risky mortgages; the bank said that over the past year, it has lopped off（消減） $308 billion

51、in total assets.,36,,Meanwhile, the bank has not made any major acquisitions. While JPMorgan Chase snapped up（迅速買下） Bear Stearns Cos. （貝爾斯登 ）and Washington Mutual Inc., and Bank of America Corp. bought Merrill Lynch（美林）,

52、 Citigroup lost a bid for Wachovia Corp.（瓦喬維亞銀行 ） and its massive deposit base to Wells Fargo.,37,Paper task(20分),1.The impact of RMB appreciation to China’s export.2.How will US financial crisis affect China’s economy?

53、Requirement:條理清楚，內(nèi)容充實(shí)，文題相符；二選一，字?jǐn)?shù)6000（字符）,38,3.5.1 influence on share prices,Points that influence the share price：The financial situation of the company;The situation of the industry in which the company operates;

54、The state of the economy in general;The beliefs of investors;When price-sensitive（價(jià)格敏感） information arrives, a share price will change.,39,3.5.2 Predicting prices,Theories to predict share prices:The random walk hypo

55、thesis（隨機(jī)游走假設(shè)）: the day-to-day change of stock prices are completely random（隨意的） or unpredictable（不可預(yù)測(cè)的）.The efficient market hypothesis（有效市場(chǎng)假設(shè)）: share prices always accurately or exactly reflect all relevant informatio

56、n.,40,,Technical analysis（技術(shù)分析）: studying past share prices to forecast future price changes.Fundamental analysis（基本面分析）: the analysis of macro-economic indexes, capital markets and political factors.,,,,,,,,,,,time,pri

57、ce,Left shoulder,head,Right shoulder,neckline,,,sell,Head and shoulders pattern 頭肩圖形,41,3.5.3 Types of risk,Unsystematic risk（非系統(tǒng)風(fēng)險(xiǎn)）: things that affect individual companies, such as production problems, which can be red

58、uced by making a diversified portfolio（分散化的投資組合）.Systematic risk（系統(tǒng)風(fēng)險(xiǎn)）: things that affect the whole market, cannot be avoided by diversification（分散化）. If a stock market falls, all the shares listed on it will fall to s

59、ome extent.,42,3.6 Describing charts and graphs,3.6.1 Increase and decrease,43,3.6.1 Increase and decrease,44,3.6.2 Rate of change,45,3.6.3 High points, low points, and staying the same,,,,,,,46,3.7 Bonds,Bonds are loans

60、 to local and national governments and to large companies.Bondholders are creditors, not owners, of a corporation.The holders of bonds generally receive fixed interest payments（固定利息支付）, once or twice a year, and get th

61、eir principal（本金） back on a given maturity date（到期日）.,47,,In Britain, government bonds are known as gilt-edged stock（金邊債券）; In the US, they are called Treasury notes（國庫券）, which have a maturity of 2-10years, and Treasury

62、 bonds, with a maturity of 10-30 years.A municipal bond(地方債券) is a debt issue of a state or political subdivision（政治機(jī)構(gòu)）, such as county, city, township, or village.,48,secured bonds,A secured bond is backed by specific

63、pledges(抵押) of company assets. Mortgage bonds（抵押債券） are backed by real and personal property owned by the firm, such as machinery or furniture.Collateral trust bonds（間接信用債券） are backed by stocks and bonds of other comp

64、anies owned by borrowing firm.Equipment trust certificate(設(shè)備信托債券), railroads and airline companies use rolling stock(全部車輛) and airplanes as collateral（擔(dān)保品）.,49,Unsecured bonds,Debenture(信用債券): a bond backed only by the

65、reputation of the issuing corporation or governmental unit.Junk bonds（垃圾債券）: pay a high interest rate but with a low credit rating.,50,Other types of bonds,Convertible shares（可轉(zhuǎn)換債券） or convertibles: pay lower interest r

66、ates than ordinary bonds, because the buyer gets the chance of making a profit with the convertible option.Zero coupon bonds（零息債券）: pay no interest but sold at a discount on their par value （票面價(jià)值）, and repaid at 100% at

67、 maturity.,51,Credit rating,Governments issue bonds to raise money and there is almost no risk that the borrower will default(違約).Companies issue bonds, called corporate bonds, which should be given credit ratings（信用分級(jí)）

68、 by credit agencies, according to their ability to repay the loan to the bondholders.The highest grade is known as AAA, or Aaa, lower grades are Baa, BBB,C, etc.,52,3.8 Derivatives,Derivatives（衍生品） are financial product

69、s whose value is derived from（源自） another financial product, such as a stock, a stock market index, or interest rate payments.They can be used to manage the risks associated with securities, to protect against fluctuati