金融学基础

Chapter 1 An Overview of Finance 12
1.0 Introduction 12
1.1 Capital Market 16
1.1.1 The Definition of Capital Market  16
1.1.2 The Role of Capital Market 16
1.1.3 Primary Market vs Secondary Market 17
1.2 Participants in a Capital Market   18
1.2.1 Financial Intermediaries   18
1.2.2 Financial Institutions 20
1.2.3 Broker-Dealer 21
1.3 Business Organisations and Physical Assets Market   22
1.4 Chinese Capital Market: An Introduction 24
1.4.1 Shanghai Stock Exchange (SSE)  25
1.4.2 The STAR Market 26
1.4.3 The Shen Zhen Stock Exchange (SZSE) 27
1.4.4 Beijing Stock Exchange (BJSE) 29
1.5 Share Classes and Securities in China   29
1.6 Capital Market Analyst Approach 35
Conclusion 36
Exercises 38
Chapter 2 Money and Money Market  45
2.0 Introduction 45
2.0.1 Checks/Cheques   46
2.0.2 Legal Tender 47
2.0.3 Barter 49
2.1 Historical Development of Money   49
2.1.1 Origins of Money  49
2.1.2 Token Money 51
2.1.3 Money Development in China   52
2.2 The Essential Qualities of Money   53
2.3 The Functions of Money 54
2.4 Defining Money in a Broader Sense 55
2.4.1 Money Convertibility 55
2.4.2 Money Defined in Theory 56
2.4.3 Money Defined in Macroeconomics 57
2.4.4 Money Defined by Money Supply 58
2.5 Money Market 59
2.5.1 The Bill Market 60
2.5.2 Inter-bank (Lending) Market 61
2.5.3 Certificates of Deposit Market 62
Conclusion 63
Exercise 63
Chapter 3 Basic Concepts and Theories in Finance  69
3.0 Introduction 69
3.1 Theory of Managerial Self-Interest 71
3.2 The Concept of Agency 74
3.3 The Concept of ‘Time Value of Money’ 78
3.3.1 Single Interest Rate   79
3.3.2 Compound Interest Rate 81
3.4 The Concept of Maximising Shareholders’ Wealth   83
3.5 Risk Diversification and Risk Aversion 84
3.5.1 Systemic Risk or Market Risk   85
3.5.2 Risk-Aversion Theory 88
3.6 Information Asymmetry and Financial Signalling   89
3.6.1 Information Asymmetry   89
3.6.2 The Financial Signalling Theory 90
3.7 The Capital Market Efficiency Theory   91
Conclusion 92
Exercises 92
Chapter 4 Business Source of Finance  97
4.0 Introduction 97
4.1 Business Structure 98
4.1.1 Sole Proprietor   99
4.1.2 Partnership 100
4.1.3 Unincorporated vs. Incorporated Business 101
4.2 Equity Finance   102
4.2.1 Ordinary Share   102
4.2.2 Preference Shares 104
4.3 Debt Finance   105
4.3.1 Types of Corporate Debt   105
4.3.2 Interest Coupon Rate 107
4.4 Convertible Securities and Warrants   108
4.5 International Sources of Finance 109
4.6 Alternative Sources of Finance 110
Conclusion 110
Exercises 112
Chapter 5 Time Value of Money  117
5.0 Introduction 117
5.1 Future Value 118
5.2.1 The concept of future value
5.2.2 Future Value Table 119
5.2.3 The Use of Future Value 120
5.3 Present Value 123
5.4 Annuities   125
5.5 Perpetuity  129
5.6 Real and Nominal Rates of Interest 132
Conclusion 134
Exercises 135
Chapter 6 Fixed-Interest Securities and Valuations  145
6.0 Introduction 145
6.1 What is Value? 146
6.1.1 Book Value  147
6.1.2 Market Value 149
6.1.3 Forced-Sale Value 150
6.2 Government Bond Valuation  151
6.2.1 Risks Associated with Government Bonds  152
6.2.3 Calculating Market Value After an Unexpected Change in Interest Rates 154
6.3 Bond Yields  156
6.3.1 Interest (Current) Yield 156
6.3.2. Yield to Maturity (YTM) 156
6.3.3 The Valuation of Undated Government Bonds 158
6.4 Corporate Bond  160
6.4.1 Risks Associated with Debentures and Loan Stock  161
6.4.2 Further Explanation of Default Risk Premium 166
6.4.3 China Government Bond Index 168
6.5 An Introduction to Yield Curves  169
6.5.1 Introduction to Yield Curves  169
6.5.2 Positive Yield Curve 171
6.5.3 Inverted Yield Curve 172
6.5.4 Flat Yield Curve 172
Conclusion   173
Exercises 174
Chapter 7 Ordinary Share Valuation  179
7.0 Introduction 179
7.1 Information and Equity Value 181
7.2 Valuing Ordinary Shares 182
7.2.1 Absolute valuation  183
7.2.2 Relative valuation 183
7.2.3 Factors that affect the value of ordinary shares 184
7.3 Equity Valuation Models  185
7.3.1 Asset-based valuation  186
7.3.2 Income-based valuation model 188
7.3.4 Discounted cash flow-based valuation (DCFV) 195
7.4 Conclusion   199
Exercises 200
Chapter 8 Stock Market Investment Indicators   201
8.0 Introduction 201
8.1 Measuring Risks and Returns  202
8.1.1 Expected Return   203
8.1.2 Variance and standard deviation  204
8.1.3 Introduction to some technical indicators 208
8.2 Financial Ratio Analysis   214
8.2.1 Price/Earnings (P/E) Ratio   215
8.2.2 Earning Yield 216
8.2.3 Earning Yield Vs. P/E ratio 217
8.2.4 Dividend yield 218
8.2.4 Dividend Coverage Ratio (DCR) 219
8.2.5 Solvency ratio (Gearing) 220
8.2.6 Profitability ratios 221
8.2.7 Working capital management ratios 222
8.2.8 Liquidity ratio 223
8.3 Comprehensive Examples  223
8.3.1 Stock Market Performance Analysis  223
8.3.2 Financial Ratios Analysis and a Comparison of Two Companies in the Same Industry   224
8.3.4 FRA in action 228
Conclusion    233
Exercises 235
Chapter 9 Strategic Financial Management   240
9.0 Introduction 240
9.1 Business Finance 241
9.2 Finance in Non-profit Organisations (NPOs) 243
9.3 The Concept of Value, Revisited 245
9.4 Strategic Financial Management 247
9.5 Investment Decisions 249
9.6 Financing Decisions 250
Keys to Exercises
References  254