【正文】 2023 by The McGrawHill Companies, Inc. All rights reserved. 339 X Corp $70 50% Initial Margin 40% Maintenance Margin 1000 Shares Purchased Initial Position Stock $70,000 Borrowed $35,000 Equity $35,000 Margin Trading Initial Conditions McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 324 How Securities Are Traded Chapter 3 McGrawHill/Irwin Copyright 169。 information system for individuals, brokers and dealers. ?Securities: stocks, bonds and some derivatives. Most secondary bonds transactions McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 36 Organization of Secondary Markets ?Organized exchanges ?OTC market ?Third market ?Fourth market McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 321 Short Sale Maintenance Margin Stock Price Rises to $110 Sale Proceeds $10,000 Initial Margin 5,000 Stock Owed 11,000 Net Equity 4,000 Margin % (4000/11000) 36% McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 336 Types of Orders ?Instructions to the brokers on how to plete the order ?Market ?Limit ?Stop loss McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 342 Short Sales ? Purpose: to profit from a decline in the price of a stock or security. Mechanics Borrow stock through a dealer. Sell it and deposit proceeds and margin in an account. Closing out the position: buy the stock and return to the party from which it was borrowed. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 327 Public Offerings ?Public offerings: registered with the SEC and sale is made to the investing public. Shelf registration (Rule 415, since 1982) ?Initial Public Offerings (IPOs) Evidence of underpricing Performance McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 311 International Market Structures ? London Stock Exchange Dealer market similar to NASDAQ Stock Exchange Automated Quotation Greater Anonymity ? Tokyo Stock Exchange No market making service Sartori provides bookkeeping service Feature a floor and electronic trading ? Global Market Alliances McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 33 Investment Banking Arrangements ? Underwritten vs. “Best Efforts” Underwritten: firm mitment on proceeds to the issuing firm. Best Efforts: no firm mitment. ? Negotiated vs. Competitive Bid Negotiated: issuing firm negotiates terms with investment banker. Competitive bid: issuer structures the