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Stock market(khmer unicode
- 1. Chapter 11 ទទទទទទទទទទទ The Stock Market
- 2. 11-2 Chapter Preview • We examine the markets where stocks trade, and then review the underlying theories for stock valuation. We learn that stock valuations is quite difficult. Topics include: –កកកកកកកកកក កកកកកកក កកកកកកកកក(Investing in Stocks)
- 3. 11-3 Chapter Preview (cont.) –កកកកកកកកកកកកកក កកកកកកកកក(Stock Market Indexes) –កកកកកកកកកក កកកកក(Buying Foreign Stocks) –កកកកកកកកកកកក កកកកកកកកកកក(Regulation of the Stock Market)
- 4. 11-4 កកកកកកកកកក កកកកកកក កកកកកកកកក(Investin 1.Representsg in Stocks) ownership in a firm 2.Earn a return in two ways – Price of the stock rises over time – Dividends are paid to the stockholder 4. Right to vote for directors and on certain issues 5. Two types – Common stock • Right to vote • Receive dividends – Preferred stock • Receive a fixed dividend
- 5. 11-5 Investing in Stocks: Sample Corporate Stock Certificate
- 6. 11-6 Investing in Stocks: How Stocks are Sold • Organized exchanges –NYSE is best known, with daily volume around 2 billion shares. –“Organized” used to imply a specific trading location. But computer systems (ECNs) have replaced this idea. –Others include the ASE (US), and Nikkei, LSE, DAX (international)
- 7. 11-7 Investing in Stocks: How Stocks are Sold • Over-the-counter markets –Best example is NASDAQ –Dealers stand ready to make a market –Today, about 3,300 different securities are listed on NASDAQ. –Important market for thinly-traded
- 8. 11-8 Investing in Stocks: Organized vs. OTC • កកកកកកកកកកកក (e.g., NYSE) –កកកកកកកកកកកកកក កកកកកកកកកកកកកកកកកក កកកកកកក –25%កកកកកកកកកកកក កកកកកកកកកកកកក កកកកកកកកកកកកក កកកកកកកកក
- 9. 11-9 កកកកកកកកកកក កកកក កកកកកកComputing the Price of Common Stock កកកកកកកកកកកក កកកកកកកកកក កកកកក កកកកកកកកកកកកកកកក កកកកកកកកកកក កកកកកកកកកកកក កកកកកកក កកកកក:កកកកកកកក កកកកកកកកកកកកកកក កកកកកកកកក កកក
- 10. 11-10 កកកក កកកកកកComputing the Price of Common Stock: The One-Period Valuation • Simplest model, the expected dividend Model just taking using and price over the next year. Div 1 + P 1 •Price (1 + k ) (1 + k ) e e =
- 11. What isV thaelu paritcieo fno r Ma sotdocekl with an expected dividend and price next year of $0.16 and $60, respectively? Use a 12% discount rate Answer: 11-11 កកកកកកComputing the Price of Common Stock: The One-Period 53.71 កកកក 0.16 60 = (1 0.12) (1 0.12) + + + Price =
- 12. 11-12 កកកកកកកកកក Computing the Price of Common Stock: The Generalized Dividend • Most general model, but the infinite sum Valuation may not Model converge. • Price = å¥ Div t k t e t=1 (1+ ) • Rather than worry about computational problems, we use a simpler version, known as the Gordon growth model.
- 13. • Same as the previous model, but it assumes that dividend grow at a constant rate, g. That is, 11-13 កកកក កកកកកកComputing the Price of Common Stock: The Gordon Growth Model Div(t+1) = Divt x (1 + g) • Price = D 1 Div t t e 1 k k g (1 ) ( ) t e - = + å¥ =
- 14. 11-14 កកកក កកកកកកComputing the Price of Common Stock: The Gordon Growth The model is Museofdule, lwith the following assumptions: • Dividends do, indeed, grow at a constant rate forever • The growth rate of dividends, g, is less than the required return on the equity, ke.
- 15. 11-15 កកកក កកកកកកComputing the Price of Common Stock: The Generalized Dividend • The priceV eaarluniantgsi ornat iMo (oPdEe)l is a widely watched measure of much the market is willing to pay for $1.00 of earnings from the firms. • Price = E P ´ E
- 16. 11-16 កកកក កកកកកកComputing the Price of Common Stock: The Price Earnings If the inVduaslutrya tPioEn r aMtioe tfohro ad firm is 16, what is the current stock price for a firm with earnings for $1.13/share? Answer: Price = 16 x $1.13 = $18.08
- 17. 11-17 រររររររររររររ រររររររ(How the Market Sets Security • ទទទទទទទទPទrទicទesទ)ទទទ ទទទទ,ទទទទទទទទទទទទ ទទទទទទទទទទទទទទទទទទទ ទទ ទទទទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទ ទទទទទទ • ទទទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទទទទទ ទទទទទទទទទទទ ទទទទទទទទ ទទទទទទទទទទទទ
- 18. • Consider the following three valuations for a stock with certain dividends but different perceived risk: 11-18 រររររររររររររ រររររររ(How the Market Sets Security Prices) • Bud, who perceives the lowest risk, is willing to pay the most and will determine the “market” price.
- 19. 11-19 រររររររររររររ រររររររ(Errors in Valuation) ទទទទទទទទទទទ ទទទទទទ price model ទទទ ទទទទទទទទទទទ ទទទទទទទទទទទ ទទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទ ទទទទទទទទទទ ទទទទទទទទទទទទទទ ទទទទទទទទទទ ទទទទទទទទទទទ
- 20. 11-20 ររររររររររររ ររ រររររររររ(Stock Market Indexes) • ទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទទ ទទទទទទទទទទទ ទទទទទទទទទទទទទទ ទទទទទទទទទ • ទទទទទទទទទទទទ ទទទទទទទទទទទទទទទ the Dow Jones Industrial Average,
- 21. 11-21 Stock Market Indexes: the Dow Jones Industrial Average
- 22. 11-22 Stock Market Indexes, DJIA Historical stocks charts are found at http://stockcharts.com/charts/historical/
- 23. 11-23 Stock Market Indexes, DJIA (cont.) Historical stocks charts are found at http://stockcharts.com/charts/historical/
- 24. 11-24 ររររររររររ រររររ(Buying Foreign Stocks) • ទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទ ទទទទទទទទទទទ ទទទទទទទទទទទទទទទ ទទទទទទទទទ ទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទ ទទទទទទទទទទទទទទទទ U.Sទ
- 25. 11-25 បបបបបបបបបបបប បបបបបបប បបបប(Regulation of the Stock Market) • បបបបបបបបបបបប បបបបSEC(Securities and Exchanges of commission)បប បបបបបបបបបប បបបបបបបបបបបបប បបបបបបបបបបបបបបបបប បបបបបបបបបបបបបបប • SEC បបបបបបបប
- 26. 11-26 បបបបបបប បបបប(Regulation of the Stock Market) • បប:ប Dបivបisបioបnបs oបf the SEC បបបបបបបបបបប បបបបបបបប:បបបបបបប បបបបបបបបបបបបប បបបបបប បបប បបបបបបបបបបប បបបបបប បបបបបបបបបប បបបបបបបបបបបប បបបបបបបបបបបបបប
- 27. 11-27 បបបបបបប បបបប(Regulation of the Stock Market) • បប:ប Dបivបisបioបnបs oបf the SEC បបបបបបបបបបបប បបបបបបប បបបបបបបបបបបប បបប បបបបបបបបបបបបបបប បបបបបបបបបបបបបបប បបបបបបបបប • បបបបបបបបប
- 29. 11-29
- 30. 11-30