International Equity Markets. Dora Chen, Zhen Zhang, Daisy Guo, Spencer Hu,

Size: px
Start display at page:

Download "International Equity Markets. Dora Chen, Zhen Zhang, Daisy Guo, Spencer Hu,"

Transcription

1 International Equity Markets Dora Chen, Zhen Zhang, Daisy Guo, Spencer Hu,

2 International Equity Markets Chapter Objective: This chapter continues discussion of international capital markets with a discussion of both the primary and secondary equity markets throughout the world. International Financial Management 2

3 Agenda A Statistical Perspective Market Structure, Trading Practices, and Costs Trading in International Equities International Equity Market Benchmarks Factors Affecting International Equity Returns ishares MSCI Case study: Huaneng International Power International Financial Management 3

4 Definition Equity securities represent the ownership claims on a company s NET assets. It plays a fundamental role in investment analysis and portfolio management. International Financial Management 4

5 A Statistical Perspective International Financial Management 5

6 A Statistical Perspective Market Capitalization of Developed Countries Market Capitalization of Developing Countries Measures of Liquidity Measures of Market Concentration International Financial Management 6

7 Market Capitalization World s equity Market Capitalization at year-end 2006: $52 trillion Developed Country Almost 83% of the market capitalization is accounted for by the developed world. Developing Country The other 17% is accounted for by developing countries in emerging markets. -Europe -Far East -Atlantic -North America -Latin America -Asia -Eastern Europe -Mideast/Africa International Financial Management 7

8 Market Capitalization of Equity Markets in Developed Countries (in Billions U.S. Dollars) International Financial Management 8

9 Market Capitalization of Equity Markets in Selected Developing Countries (in Billions U.S. Dollars) International Financial Management 9

10 Growth of Global Equity Market Recently the growth rates in these emerging markets have been strong, but with more volatility than we have here at home. From 1996 to 2006 market cap. In developed countries increased 140% from $18 Tr. to $43 Tr. Increase was not evenly distributed: 177% for Europe, 137% for North America, and 95% for Far East International Financial Management 10

11 Measures of Liquidity Liquidity refers to how quickly an asset can be sold without a major price concession. The equity markets of the developed world tend to be much more liquid than emerging markets. So, while investments in emerging markets may be profitable, the focus should be on the long term. International Financial Management 11

12 Turnover Ratio Turnover ratio = Market transactions($) Market cap International Financial Management 12

13 Turnover Ration of Equity Markets in Developed Countries (Transaction in U.S.$/Year-End Market Capitalization in U.S. $) International Financial Management 13

14 Turnover Ration of Emerging Equity Markets in Selected Developing Countries (Transaction in U.S. $/Year-End Market Capitalization in U/S/ $) International Financial Management 14

15 Measures of Market Concentration Emerging Markets tend to be much more concentrated than our markets. Concentrated in relatively few companies. That is, a few issues account for a much larger percentage of the overall market capitalization in emerging markets than in the equity markets of the developed world. International Financial Management 15

16 Percentage of Market Capitalization Represented by the 10 Largest Stocks: Emerging Equity Markets in Selected Developing Countries International Financial Management 16

17 Country and Regional Contributions to Global GDP and Equity Market Capitalization (2007) International Financial Management 17

18 Equity Markets Ranked by Total Market Capitalization at the End of 2008 (Billions of U.S. Dollars) International Financial Management 18

19 Real Returns on Global Equity Securities, Bonds, and Bills During International Financial Management 19

20 Real Returns on Global Equity Securities, During , and International Financial Management 20

21 International Comparisons of Stock Ownership in Selected Countries: International Financial Management 21

22 Market Structure, Trading Practices, and Costs International Financial Management 22

23 Market Structure Primary market: New issues are first offered Secondary market: Subsequent trading takes place -They provide Marketability and Share valuation International Financial Management 23

24 Market order Secondary Market an order for the broker to buy or sell share immediately at the market price Limit order an order to transact at a specified price (the limit price) International Financial Management 24

25 Limit or Market order? The choice is yours International Financial Management 25

26 Market Structure Dealer Market The stock is sold by dealers, who stand ready to buy and sell the security for their own account. In the U.S., the OTC market is a dealer market, NASDAQ. Agency Market/Auction Market broker take client s order through the agent, who matches it with another public order. in the U.S., each stock traded on the exchange is represented by a specialist. Automated Exchanges International Financial Management 26

27 Secondary Markets Characteristics Market structure, types of flow. Continuous (i.e. OTC, NYSE, and AMEX) Non-continuous Call market Crowed trading International Financial Management 27

28 Secondary Markets Characteristics Characteristics of Major Equity Trading Systems International Financial Management 28

29 Important Exchanges In The World- America New York Stock Exchange (NYSE) American Stock Exchange (AMEX) National Association of Securities Dealers Automated Quotation System (NASDAQ) International Financial Management 29

30 Important Exchanges In The World- Europe London Stock Exchange (LSE) Frankfurt Stock Exchange (FTSE) Euronext International Financial Management 30

31 Important Exchanges In The World- Europe Tokyo Stock Exchange, (TSE) Singapore Exchange, (SGX) The Stock Exchange of Hong Kong, (SEHK) International Financial Management 31

32 Standards of Major Stock Exchanges International Financial Management 32

33 Standards of Major Stock Exchanges International Financial Management 33

34 Standards of Major Stock Exchanges International Financial Management 34

35 Standards of Major Stock Exchanges International Financial Management 35

36 Trading in International Equities International Financial Management 36

37 Trading in International Equities Magnitude of International Equity Trading Cross-listing of Shares Yankee Stock Offerings American Depository Receipts Global Registered Shares International Financial Management 37

38 Magnitude of International Equities Trading 1980s,world capital markets began a trend toward greater global integration. Diversification, reduced regulation, improvements in computer and communications technology, increased demand from MNCs for global issuance. International Financial Management 38

39 Designing a Strategy to Source Equity Globally Most firms raise their initial capital in their own domestic market. But not well known enough to attract foreign investors. an international bond offering and/or cross-listing equity shares on more highly liquid foreign stock exchanges. International Financial Management 39

40 Cross-Listing of Shares A firm having its equity shares listed on one or more foreign exchanges. American Depository Receipt (ADR) Global Depository Receipt (GDR) European Depository Receipt (EDR) International Depository Receipts (IDR) Global Registered Shares (GRS) International Financial Management 40

41 Benefits of Cross-Listing Improve the liquidity Lower cost of capital Expands the investor base for a firm. May mitigate possibility of hostile takeovers. Increase its share price Increase the firms visibility International Financial Management 41

42 Costs to Cross-Listing and Selling Equity Abroad Full and Transparent disclosure Worldwide trend fuller, more transparent, and more standardized financial disclosure may have the desirable effect of lowering the cost of equity capital. Securities laws in both countries International Financial Management 42

43 Do cross-listings create value? International Financial Management 43

44 Yankee Stock Offerings Direct sale of new equity capital to U.S. public investors by foreign firms. Privatization in South America and Eastern Europe Rapid growth in the economies of the developing countries Equity sales by Mexican firms trying to cash in on NAFTA International Financial Management 44

45 Depository Receipts Negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank. International Financial Management 45

46 Depository Receipts American Depository Receipt (ADR) Global Depository Receipt (GDR) International Financial Management 46

47 American Depository Receipts A receipt that represents the number of foreign shares that are deposited at a U.S. bank.(bank of New York) Foreign stocks trade on U.S. exchanges as ADRs. NYSE NASDAQ (OTC) Involved financial entities: depository bank investing financial intermediary International Financial Management 47

48 International Financial Management 48

49 Sponsored vs. Unsponsored ADRs Sponsored ADR Program Unsponsored ADR Program Direct involvement of foreign company Foreign company provide Investment information Investors have the same rights Foreign company pay depository fees No direct involvement of foreign company Foreign company provide no investment information Depository bank has the rights Investors pay depository fees International Financial Management 49

50 Sponsored ADRs Summary of the Main Features of American Depository Receipts International Financial Management 50

51 Advantages of ADRs denominated in U.S. dollars, trade on U.S. exchanges and can be bought through any broker. Prices & Dividends in U.S. dollars. Most underlying stocks are bearer securities, the ADRs are registered. Represents fraction of a shares, single share or multiple shares of foreign stock International Financial Management 51

52 Special Risks of ADRs Exchange rate risk Inflationary risk Political risk International Financial Management 52

53 ADR Pricing PADR = Conv X PFS X S International Financial Management 53

54 ADR Pricing A share of the ADR of the French firm Pari represents one share of this firm s stock that is traded on a French stock exchange. The share price of Pari was 20 euros when the French market closed. As the U.S. stock market opens, the euro is worth $1.05. What is the no-arbitrage US dollar price of an ADR? Assume that transactions costs are negligible. International Financial Management 54

55 ADR Pricing PADR = Conv X PFS X S = 1 x 20 x $1.05 = $21 International Financial Management 55

56 ADR Arbitrage What if Pari ADRs were trading at $20 when the underlying shared were trading in France at 20 euros, what would you do to earn a trading profit? International Financial Management 56

57 Global Depository Receipt Access to global markets outside home market Raise capital in the Europe and the US Reg S and ADR International Financial Management 57

58 Benefits of Depository Receipts International Financial Management 58

59 Global Registered Shares SHAREs traded globally with same price in different currencies Trade in both dollars and euros. Advantage: All shareholders have equal status and voting rights. Disadvantage: More expensive to establish a global registrar and clearing facility Limited success International Financial Management 59

60 International Equity Market Benchmarks International Financial Management 60

61 International Equity Market Benchmarks Equity Market Benchmarks Morgan Stanley Capital International (MSCI) Dow Jones World Equity Benchmark Shares (WEBS) -Country-specific baskets of stocks designed to replicate the country indexes of 20 countries and 3 regions. International Financial Management 61

62 North American Equity Market Benchmarks NAME Dow Jones Industrial Average NASDAQ Combined Composite S&P 300 TSE 300 (CA) Mexico BOLSA Index SYMBOL DJIA CCMP SPX TS300 MEXBOL International Financial Management 62

63 I Shares MSCI Country- specific baskets of stocks designed to replicate the country indexes of 21 countries and 4 regions. I Shares are exchange traded funds that trade on the American Stock Exchange and are subject to U.S. SEC and IRS diversification requirements International Financial Management 63

64 Factors Affecting International Equity Returns International Financial Management 64

65 Factors affecting equity returns Macroeconomic factor Exchange rate Industrial structure International Financial Management 65

66 Macroeconomic Factors Affect the overall economic environment Interest rate Interest rate differentials Inflation rate Employment rate, etc International Financial Management 66

67 Macroeconomic Factors The data do not support the notion that equity returns are super strongly influenced by macro factors. It is not to say that macro factors are not important, but we cannot ignore these factors. International Financial Management 67

68 Exchange Rate Exchange rate movements in a given country reinforce the stock market movements in that country. Weak relationship, so one should be careful not to confuse correlation with causality. International Financial Management 68

69 Exchange Rate Changes in exchange rates explained a larger portion of the variability of foreign bond markets than foreign equity markets. Hedging is considered to be beneficial. International Financial Management 69

70 Industrial Structure Studies examining the influence of industrial structure on foreign equity returns are inconclusive. International Financial Management 70

71 Extreme Losses in Global Equity Markets During International Financial Management 71

72 Case Study: Huaneng Power International International Financial Management 72

73 Huaneng Power International (HPI) Started in 1991 A for-profit and state-run organization A monopoly in power industry of China Mandate for growth Reliable and efficient International Financial Management 73

74 HPI s Challenge In 1994, HPI needed Rmb 34.3 billion for expansion, but domestic sources were insufficient to this huge requirement. International Financial Management 74

75 Economic Background Rapid economic growth since 1970s Serious inflation problem followed Electricity became a scare commodity Interest rate differential between China and U.S. Unstable exchange rate International Financial Management 75

76 International Financial Management 76

77 International Financial Management 77

78 International Financial Management 78

79 International Financial Management 79

80 International Financial Management 80

81 Political Background Deng Xiaoping s passing was near. Courts of the PRC was not likely to enforce against the company judgements obtained in foreign courts. No withhold tax on dividends and capital gains earned by foreigners International Financial Management 81

82 Financial Market Background China s capital market was just emerging International market perception on PRC firms new issue was not expected to be well. HPI offers guaranteed return to attract foreign investors International Financial Management 82

83 International Market Background Hong Kong market was a reliable source of capital, but it wasn t clear that whether it was saturated. NYSE, NASDAQ, and other international market offer much potential in terms of size, higher valuation, and thirst for emerging market investment. International Financial Management 83

84 Final Decision HPI decided to tap on the NYSE. HPI entered the NYSE by issuing Level III ADRs HPI adapted the U.S. GAAP. International Financial Management 84

85 Is this the right timing for HPI to raise capital overseas, and will foreign investors be interested in investing this company? International Financial Management 85

86 Domestic Issue Right Timing Inefficient self financing Bank incapable to meet capital needs Oversaturation of Hong Kong Market Need for expansion to meet growth needs International Financial Management 86

87 Right Timing U.S. investors point of view: State-run for-profit organization No tax withholding Prospective growth of stock value (driven by China s energy need) Latest equipment and technologies for efficient operation Guaranteed return International Financial Management 87

88 Is there any alternatives to stocks HPI can use to finance its expansion? International Financial Management 88

89 No alternatives Debt financing ( Corporate bond, bank loan, term loan) Increase leverage Change in debt structure and risk level Local banks do not have sufficient capital International banks might not take the risk International Financial Management 89

90 What are advantages to investors of trading in ADRs rather than the underlying stock? International Financial Management 90

91 As a foreign investor of HPI, what are the factors that can affect your equity return? International Financial Management 91

92 Factors to Consider Developing / emerging Chinese market Inflation problem Interest rate differentials Exchange rate risk Political uncertainties International Financial Management 92

93 Questions?

94 Content International Financial Management 94

FRIEDLAND CAPITAL INC. GUIDE TO AMERICAN DEPOSITARY RECEIPTS

FRIEDLAND CAPITAL INC. GUIDE TO AMERICAN DEPOSITARY RECEIPTS FRIEDLAND CAPITAL INC. GUIDE TO AMERICAN DEPOSITARY RECEIPTS With global economies increasingly intertwined, it shouldn t come as a surprise that large numbers of non-us corporations have sought access

More information

CHAPTER 13 INTERNATIONAL EQUITY MARKETS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS

CHAPTER 13 INTERNATIONAL EQUITY MARKETS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS CHAPTER 13 INTERNATIONAL EQUITY MARKETS SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Exhibit 13.11 presents a listing of major national stock market indexes as

More information

Investing in International Financial Markets

Investing in International Financial Markets APPENDIX 3 Investing in International Financial Markets http:// Visit http://money.cnn.com for current national and international market data and analyses. The trading of financial assets (such as stocks

More information

Chapter 12. Equity Globally

Chapter 12. Equity Globally Chapter 12 Sourcing Equity Globally Sourcing Equity Globally: Learning Objectives Design a strategy to source equity globally Analyze the motivations and goals of a firm issuing new equity shares on foreign

More information

General Investment-Related Terms

General Investment-Related Terms General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual funds or share classes permitted under an SEC rule to help cover the costs associated with marketing and selling the fund. 12b-1

More information

EP Asia Small Companies Fund EP Latin America Fund EP China Fund Each a series of Investment Managers Series Trust

EP Asia Small Companies Fund EP Latin America Fund EP China Fund Each a series of Investment Managers Series Trust EP Asia Small Companies Fund EP Latin America Fund EP China Fund Each a series of Investment Managers Series Trust Supplement dated June 30, 2015, to the Summary Prospectus dated March 5, 2015, and the

More information

Note on New Products in F&O Segment. 2. Options Contracts with Longer Life/Tenure. 6. Exchange-traded Currency (Foreign Exchange) F&O Contracts

Note on New Products in F&O Segment. 2. Options Contracts with Longer Life/Tenure. 6. Exchange-traded Currency (Foreign Exchange) F&O Contracts Note on New Products in F&O Segment Contents 1. Mini Contracts in Equity Indices 2. Options Contracts with Longer Life/Tenure 3. Volatility Index and F&O Contracts 4. Options on Futures 5. Bond Index and

More information

J. Gaspar: Adapted from Jeff Madura International Financial Management

J. Gaspar: Adapted from Jeff Madura International Financial Management Chapter3 International Financial Markets J. Gaspar: Adapted from Jeff Madura International Financial Management 3-1 International Financial Markets Can be segmented as follows: 1.The Foreign Exchange Market

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Answers to Concepts in Review

Answers to Concepts in Review Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the

More information

CHAPTER 16. Stocks and Bonds

CHAPTER 16. Stocks and Bonds CHAPTER 16 Stocks and Bonds SECTION 1: Stocks Financial Markets Stocks and bonds are bought and sold in a financial market. Financial markets channel money from some people to other people. They bring

More information

Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants

Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 PART 1 General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual

More information

How To Understand The Stock Market

How To Understand The Stock Market We b E x t e n s i o n 1 C A Closer Look at the Stock Markets This Web Extension provides additional discussion of stock markets and trading, beginning with stock indexes. Stock Indexes Stock indexes try

More information

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA

Foreign Exchange Investments Discover the World of Currencies. Private Banking USA Foreign Exchange Investments Discover the World of Currencies Credit Suisse Securities (USA) llc Private Banking USA 2 Foreign exchange: There s no ignoring the largest market in the world. Introduction

More information

ETF Exchange Traded Fund

ETF Exchange Traded Fund ETF Exchange Traded Fund BM&FBOVESPA INVESTMENT FUND Eficiência. Efficiency. Transparência. Transparency. Flexibilidade. Flexibility. Em um In a único single investimento. investment. What is an Exchange

More information

Virtual Stock Market Game Glossary

Virtual Stock Market Game Glossary Virtual Stock Market Game Glossary American Stock Exchange-AMEX An open auction market similar to the NYSE where buyers and sellers compete in a centralized marketplace. The AMEX typically lists small

More information

London Stock Exchange

London Stock Exchange London Stock Exchange Jane Zhu, Head of Asia Pacific December 2008 London is the most international financial centre in the world Over 700 overseas companies quoted on the London Stock Exchange s s markets

More information

Outline. Securities Markets. Markets. Money and Capital Markets. Markets Orders Positions Information

Outline. Securities Markets. Markets. Money and Capital Markets. Markets Orders Positions Information Outline Securities Markets Economics 71a Spring 2007 Mayo, Chapter 3 Lecture notes 2.3 Markets Orders Positions Information Primary markets Markets New issues (IPO s, corporate and public debt) Secondary

More information

How To Invest In Stocks And Bonds

How To Invest In Stocks And Bonds Review for Exam 1 Instructions: Please read carefully The exam will have 21 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation

More information

Types of Stock. Common Stock most common form of stock. Preferred Stock. Companies may customize other classes of stock.

Types of Stock. Common Stock most common form of stock. Preferred Stock. Companies may customize other classes of stock. Stock Market Basics What are Stocks? Stock is ownership in a publicly traded company. Stock is a claim on the company s assets and earnings. The more stock you have, the greater your claim as an owner.

More information

BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket

BASKET A collection of securities. The underlying securities within an ETF are often collectively referred to as a basket Glossary: The ETF Portfolio Challenge Glossary is designed to help familiarize our participants with concepts and terminology closely associated with Exchange- Traded Products. For more educational offerings,

More information

Strategy Insights. Moving toward an all-market approach to investing in China

Strategy Insights. Moving toward an all-market approach to investing in China Strategy Insights Moving toward an all-market approach to investing in China As China transitions from an economy that is driven by manufacturing to one led by its consumers, we are seeing the Chinese

More information

International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur

International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur Lecture - 7 Features of Foreign Exchange Market Good morning, today we will discuss features of

More information

1. Briefly discuss some of the services that international banks provide their customers and the market place.

1. Briefly discuss some of the services that international banks provide their customers and the market place. Page 287-288 QUESTIONS 1. Briefly discuss some of the services that international banks provide their customers and the market place. Answer: International banks can be characterized by the types of services

More information

EXCHANGE TRADED FUNDS. Roberto Juanchito T. Dispo, President May 23, 2013

EXCHANGE TRADED FUNDS. Roberto Juanchito T. Dispo, President May 23, 2013 EXCHANGE TRADED FUNDS Roberto Juanchito T. Dispo, President May 23, 2013 1 AGENDA Introduction to ETFs o What are ETFs? o Comparison: ETFs vs Mutual Funds o Global Performance of the ETFs o Key Selling

More information

Stock Market Development: Role of Securities Firms and New Products

Stock Market Development: Role of Securities Firms and New Products Stock Market Development: Role of Securities Firms and New Products Professor Reena Aggarwal McDonough School of Business Georgetown University Washington, D.C. 20057 Tel. (202) 687-3784 Fax (202) 687-4031

More information

Prospectus Socially Responsible Funds

Prospectus Socially Responsible Funds Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund

More information

S&P Dow Jones Indices Announces Consultation on Equity Indices

S&P Dow Jones Indices Announces Consultation on Equity Indices S&P Dow Jones Indices Announces Consultation on Equity Indices CONSULTATION S&P Dow Jones Indices (S&P DJI) is conducting a consultation with members of the investment community on the following potential

More information

Using The Stock Market Game (SMG)

Using The Stock Market Game (SMG) Using The Stock Market Game (SMG) Created by Amy Cornelisen, Garin College What is a Company? A is a person or group of persons that create a product for others to buy. The product may be something that

More information

Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants. Version 1.01

Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants. Version 1.01 Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 General Information SAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES TO

More information

Summary. Research Paper No. 27

Summary. Research Paper No. 27 Alternative Measures of the Size of the Stock Market Joseph Lee and Joanna Poon, Research Department of the Supervision of Markets Division 1 November 2005 Summary The Hong Kong stock market was the 8

More information

ETFs as Investment Options in 401(k) Plans

ETFs as Investment Options in 401(k) Plans T. ROWE PRICE ETFs as Investment Options in 401(k) Plans Considerations for Plan Sponsors By Toby Thompson, CFA, CAIA, T. Rowe Price Defined Contribution Investment Specialist Retirement Insights EXECUTIVE

More information

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product

PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product Issuer: Samsung Asset Management (Hong Kong) Limited 三 星 資 產 運 用 ( 香 港 ) 有 限 公 司 PRODUCT KEY FACTS Samsung TOPIX Daily (2x) Leveraged Product 24 June 2016 This is a leveraged product. It is different from

More information

PART III TERMS APPLICABLE TO RESPECTIVE ACCOUNTS Schedule A Terms for Cash Account / Margin Account. 5. Pilot Programme for Trading US Securities

PART III TERMS APPLICABLE TO RESPECTIVE ACCOUNTS Schedule A Terms for Cash Account / Margin Account. 5. Pilot Programme for Trading US Securities Additional information to the Client Trading Master Document Terms and Conditions (Version 6) are set out in this appendix. To download the online version, please visit our company website http://www.cashon-line.com.

More information

Buyers Guide to RMB Bonds. Main author: Bryan Collins

Buyers Guide to RMB Bonds. Main author: Bryan Collins Buyers Guide to RMB Bonds Main author: Bryan Collins RMB bond investors need to do their homework first The RMB bond market is a relatively new and exciting investment opportunity, with RMB bond having

More information

Introduction To Financial Markets & Investing

Introduction To Financial Markets & Investing Introduction To Financial Markets & Investing Matthew Lawson, M.D. Getting Started A true story Internal Medicine Intern Recently married Husband has Financial Planner assigned through his employer Neither

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

International Investing get the facts

International Investing get the facts International Investing get the facts How You Can Learn More About Foreign Companies and Markets PRESENTED BY: United States Securities and Exchange Commission Division of Corporation Finance mutual funds

More information

What Every Investor Needs to Know About Investing Internationally

What Every Investor Needs to Know About Investing Internationally S T R A T E G I C G L O B A L A D V I S O R S, L L C What Every Investor Needs to Know About Investing Internationally In this report, you will discover what every investor needs to know about international

More information

ETFs for private investors

ETFs for private investors ETFs for private investors Simple products. Sophisticated strategies. ETFs Exchange Traded Funds (ETFs) are instruments which track an index. Indices can be country or region specific and based on emerging

More information

A Look at Exchange Traded Funds September 16, 2010

A Look at Exchange Traded Funds September 16, 2010 A Look at Exchange Traded Funds September 16, 2010 Exchange traded funds, or ETFs, are one of the fastest growing products in the investment industry. Used by both professional and individual investors,

More information

Deutsche Bank Global Transaction Banking. Securities Services. Overview

Deutsche Bank Global Transaction Banking. Securities Services. Overview Deutsche Bank Global Transaction Banking Direct Securities Services Securities Services Overview Finding the right custodian with a long-term commitment to supporting its clients business is critical for

More information

Risk Warning Notice. Introduction

Risk Warning Notice. Introduction First Equity Limited Salisbury House London Wall London EC2M 5QQ Tel 020 7374 2212 Fax 020 7374 2336 www.firstequity.ltd.uk Risk Warning Notice Introduction You should not invest in any investment product

More information

83118 - RMB counter 03118 - HKD counter. 100 Units- RMB counter 100 Units HKD counter 3.10% MSCI China A Index. Renminbi (RMB) 31 December

83118 - RMB counter 03118 - HKD counter. 100 Units- RMB counter 100 Units HKD counter 3.10% MSCI China A Index. Renminbi (RMB) 31 December Issuer: Harvest Global Investments Limited PRODUCT KEY FACTS Harvest MSCI China A Index ETF A sub-fund established under the Harvest Funds (Hong Kong) ETF This is an exchange traded fund. This statement

More information

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES

CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES THE APERIO DIFFERENCE. Authors Michael Branch, CFA Ran Leshem CONSIDERATIONS WHEN CONSTRUCTING A FOREIGN PORTFOLIO: AN ANALYSIS OF ADRs VS ORDINARIES U.S. investors can capture international equity exposure

More information

Trading of Listed Equity Products in Hong Kong, the UK and US Research Department, Supervision of Markets Division 1 July 2007

Trading of Listed Equity Products in Hong Kong, the UK and US Research Department, Supervision of Markets Division 1 July 2007 Trading of Listed Equity Products in Hong Kong, the UK and US Research Department, Supervision of Markets Division 1 July 2007 Summary 1. The objective of this Research Paper is to compare the trading

More information

Market Linked Certificates of Deposit

Market Linked Certificates of Deposit Market Linked Certificates of Deposit This material was prepared by Wells Fargo Securities, LLC, a registered brokerdealer and separate non-bank affiliate of Wells Fargo & Company. This material is not

More information

BARUCH COLLEGE DEPARTMENT OF ECONOMICS & FINANCE Professor Chris Droussiotis LECTURE 2. Chapter 3 SECURITIES MARKETS

BARUCH COLLEGE DEPARTMENT OF ECONOMICS & FINANCE Professor Chris Droussiotis LECTURE 2. Chapter 3 SECURITIES MARKETS LECTURE 2 Chapter 3 SECURITIES MARKETS IPO Required Docs: Amendment to the certificate of incorporation Corporate Governance (Private are far less formal responsibility) Recruit Independent Board Members

More information

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL

COMMUNITY FOUNDATION OF GREATER MEMPHIS, INC. INVESTMENT GUIDELINES FOR MONEY MARKET POOL INVESTMENT GUIDELINES FOR MONEY MARKET POOL discretionary Money Market Pool is expected to pursue their stated investment strategy and follow the investment guidelines and objectives set forth herein.

More information

ETF Basics: An Introduction to ishares Exchange Traded Funds

ETF Basics: An Introduction to ishares Exchange Traded Funds ETF Basics: An Introduction to ishares Exchange Traded Funds Agenda Growth of ETFs and Barclays Global Investors The engine of ETFs Unique benefits of ETFs and ishares Low cost Tax efficiency Transparency

More information

Exchange-Traded Funds

Exchange-Traded Funds Exchange-Traded Funds By Ken Hawkins Investopedia Introduction Exchange-traded funds (ETFs) can be a valuable component for any investor's portfolio, from the most sophisticated institutional money managers

More information

THE STOCK MARKET GAME GLOSSARY

THE STOCK MARKET GAME GLOSSARY THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The

More information

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144

Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 Contact: Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 AIG REPORTS FIRST QUARTER 2006 NET INCOME OF $3.20 BILLION NEW YORK, NY, May 10, 2006 American International

More information

Market Overview Fal 2015

Market Overview Fal 2015 Market Overview Fall 2015 Agenda Equities o What is a stock/etf? o Why do companies issue stock? o Debt vs Equity o Different types of stocks o How stocks trade Derivatives o Futures/Forwards o Options

More information

Statement of Investment Policies and Procedures

Statement of Investment Policies and Procedures Effective July 1, 2015 Canadian Cancer Society Statement of Investment Policies and Procedures Background The Society wishes to invest funds in a prudent manner, with appropriate consideration given to

More information

The Young Investor s Guide To Understanding The Terms Used In Investing.

The Young Investor s Guide To Understanding The Terms Used In Investing. The Young Investor s Guide To Understanding The Terms Used In Investing. The Young Investor Dictionary compliments of Integrity Mutual Funds. YOUNG INVESTOR DICTIONARY Asset Something of value. The property

More information

CHAPTER 2 OVERVIEW OF THE HONG KONG STOCK MARKET

CHAPTER 2 OVERVIEW OF THE HONG KONG STOCK MARKET CHAPTER 2 OVERVIEW OF THE HONG KONG STOCK MARKET INTRODUCTION 2.1 This chapter provides a brief overview of the Hong Kong stock market, summarizes the problems relating to penny stocks or micro caps, and

More information

FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS.

FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS. FREE MARKET U.S. EQUITY FUND FREE MARKET INTERNATIONAL EQUITY FUND FREE MARKET FIXED INCOME FUND of THE RBB FUND, INC. PROSPECTUS December 31, 2014 Investment Adviser: MATSON MONEY, INC. 5955 Deerfield

More information

Chapter 3. How Securities are Traded

Chapter 3. How Securities are Traded Chapter 3 How Securities are Traded Primary vs. Secondary Security Sales Primary: When firms need to raise capital, they may choose to sell (or float) new securities. These new issues typically are marketed

More information

INDEX SERIES FTSE PUBLICATIONS. FTSE ETF Issuer Services.

INDEX SERIES FTSE PUBLICATIONS. FTSE ETF Issuer Services. INDEX SERIES FTSE PUBLICATIONS FTSE ETF Issuer Services. BEIJING BOSTON DUBAI HONG KONG LONDON MILAN MUMBAI NEW YORK PARIS SAN FRANCISCO SHANGHAI SYDNEY TOKYO FTSE FTSE Group ( FTSE ) is a world-leader

More information

ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS

ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS ACTIVITY 20.1 THE LANGUAGE OF FINANCIAL MARKETS: DEFINITIONS AMEX: The acronym stands for American Stock Exchange, formerly an independent market but now part of the New York Stock Exchange; the AMEX s

More information

Institutional Investors and the CEE Stock Exchange Group in 2014

Institutional Investors and the CEE Stock Exchange Group in 2014 Institutional Investors and the CEE Stock Exchange Group in 2014 Institutional Investors and the CEE Stock Exchange Group in 2014 The top group of investors in the combined free float of the member exchanges

More information

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS

Web. Chapter FINANCIAL INSTITUTIONS AND MARKETS FINANCIAL INSTITUTIONS AND MARKETS T Chapter Summary Chapter Web he Web Chapter provides an overview of the various financial institutions and markets that serve managers of firms and investors who invest

More information

Enriching knowledge series: Learn more about stock listing, bonds and funds investment

Enriching knowledge series: Learn more about stock listing, bonds and funds investment Enriching knowledge series: Learn more about stock listing, bonds and funds investment June 2012 External Relations Rundown Part 1: New stock listing methods Break Part 2: Credit ratings and ibonds Part

More information

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth. Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate

More information

Janus Investment Fund

Janus Investment Fund January 28, 2013 Class A Shares Ticker Class C Shares Ticker Class S Shares Ticker Class I Shares Ticker Class N Shares Ticker Class R Shares Ticker Class T Shares Ticker Global & International Janus Asia

More information

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD

INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD INTERNATIONAL SECURITIES TRADING NOW YOU CAN INVEST ACROSS THE WORLD YOU ARE WHAT YOU DO INTERNATIONAL SECURITIES TRADING III CONTENTS CONTENTS Welcome Welcome 1 2 Trade international securities with

More information

SPDR S&P North American Natural Resources ETF

SPDR S&P North American Natural Resources ETF SPDR S&P North American Natural Resources ETF Summary Prospectus-December 15, 2015 NANR (NYSE Ticker) Before you invest in the SPDR S&P North American Natural Resources ETF (the Fund ), you may want to

More information

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX

Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Summary Prospectus October 30, 2015 Brown Advisory WMC Strategic European Equity Fund Class/Ticker: Institutional Shares / BAFHX Investor Shares / BIAHX Advisor Shares / BAHAX Before you invest, you may

More information

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong

ABF PAN ASIA BOND INDEX FUND An ETF listed on the Stock Exchange of Hong Kong Important Risk Disclosure for PAIF: ABF Pan Asia Bond Index Fund ( PAIF ) is an exchange traded bond fund which seeks to provide investment returns that corresponds closely to the total return of the Markit

More information

Risks of Investments explained

Risks of Investments explained Risks of Investments explained Member of the London Stock Exchange .Introduction Killik & Co is committed to developing a clear and shared understanding of risk with its clients. The categories of risk

More information

MAIN CHARACTERISTICS OF PILOT PROGRAMME SECURITIES

MAIN CHARACTERISTICS OF PILOT PROGRAMME SECURITIES PILOT PROGRAMME FOR TRADING US SECURITIES Informational Documentation For Clients of Exchange Participants The material contained herein is for general information and investors should only consider participating

More information

How Hedging Can Substantially Reduce Foreign Stock Currency Risk

How Hedging Can Substantially Reduce Foreign Stock Currency Risk Possible losses from changes in currency exchange rates are a risk of investing unhedged in foreign stocks. While a stock may perform well on the London Stock Exchange, if the British pound declines against

More information

Stock Market -Trading and market participants

Stock Market -Trading and market participants Stock Market -Trading and market participants Ruichang LU ( 卢 瑞 昌 ) Department of Finance Guanghua School of Management Peking University Overview Trading Stock Understand trading order Trading cost Margin

More information

PERMANENT HEALTH FUND FINANCIAL STATEMENTS

PERMANENT HEALTH FUND FINANCIAL STATEMENTS FINANCIAL STATEMENTS Years Ended August 31, 2001 and 2000 Deloitte & Touche LLP Suite 2300 333 Clay Street Houston, Texas 77002-4196 Tel: (713) 982-2000 Fax: (713) 982-2001 www.us.deloitte.com INDEPENDENT

More information

BMO Global Asset Management (Asia) Limited 11 February 2016

BMO Global Asset Management (Asia) Limited 11 February 2016 Product Key Facts BMO NASDAQ 100 ETF BMO Global Asset Management (Asia) Limited 11 February 2016 Quick facts This is an exchange traded fund. This statement provides you with key information about this

More information

The Chinese corporate credit bond market. Broad prospects for development

The Chinese corporate credit bond market. Broad prospects for development The Chinese corporate credit bond market Broad prospects for development Dear Mr. Martin Scheck, Mr. Spencer Lake, Distinguished Guests, Ladies and Gentlemen, Good Morning! I am very pleased to attend

More information

HSBC World Selection Funds April 30, 2016. Monthly Factsheets Class A and C Shares. Investment products: ARE NOT A BANK ARE NOT DEPOSIT OR

HSBC World Selection Funds April 30, 2016. Monthly Factsheets Class A and C Shares. Investment products: ARE NOT A BANK ARE NOT DEPOSIT OR HSBC World Selection Funds April 30, 2016 Monthly Factsheets Class A and C Shares Aggressive Strategy Fund Balanced Strategy Fund Moderate Strategy Fund Conservative Strategy Fund Income Strategy Fund

More information

Separately Managed Accounts: The DR Opportunity

Separately Managed Accounts: The DR Opportunity Deutsche Bank Global Transaction Banking Institutional Cash & Securities Services Separately Managed Accounts: The DR Opportunity 1 In Brief Identifying the right investors to target is a key step towards

More information

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference.

Investment Bond. Funds key features. This is an important document. Please keep it safe for future reference. Investment Bond Funds key features. This is an important document. Please keep it safe for future reference. 2 WHAT ARE THE FUNDS KEY FEATURES? This document is part of the information we provide you to

More information

Chinese University of Hong Kong Conference on HKEx and the Market Structure Revolution

Chinese University of Hong Kong Conference on HKEx and the Market Structure Revolution Chinese University of Hong Kong Conference on HKEx and the Market Structure Revolution The Impact of Market Structure Changes on Securities Exchanges Regulation 31 March 2012 Keith Lui Executive Director,

More information

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 The unit investment trusts named above (the Portfolios

More information

CERTIFICATE COURSE ON FINANCIAL MARKETS AND SECURITIES LAWS. MODULE 1: Introduction to Financial Market & Money Market

CERTIFICATE COURSE ON FINANCIAL MARKETS AND SECURITIES LAWS. MODULE 1: Introduction to Financial Market & Money Market CERTIFICATE COURSE ON FINANCIAL MARKETS AND SECURITIES LAWS MODULE 1: Introduction to Financial Market & Money Market Introduction to Financial Market Financial Market Structure o Money Market o Debt Market

More information

Web. Chapter International Managerial Finance. Chapter Summary

Web. Chapter International Managerial Finance. Chapter Summary Chapter International Managerial Finance Web T his chapter provides a brief introduction to international finance. Of course, whole courses and even degree programs are offered on this topic. The reason

More information

Basic Investment Terms

Basic Investment Terms Because money doesn t come with instructions.sm Robert C. Eddy, CFP Margaret F. Eddy, CFP Matthew B. Showley, CFP Basic Investment Terms ANNUITY A financial product sold by financial institutions pay out

More information

2015 Semi-Annual Management Report of Fund Performance

2015 Semi-Annual Management Report of Fund Performance (the Fund ) For the six-month period ended March 31, 2015 (the period ) Manager: BMO Investments Inc. (the Manager or BMOII ) Portfolio manager: BMO Asset Management Inc., Toronto, Ontario (the portfolio

More information

Franklin Templeton Investment Funds

Franklin Templeton Investment Funds Franklin Templeton Investment Funds Online ID Name CRNCY Description L4058R498 FRANK EUROPEAN GRWTH A ACC EUR The Fund's objective is long term capital appreciation. The Fund invests at least two thirds

More information

SPDR S&P 400 Mid Cap Value ETF

SPDR S&P 400 Mid Cap Value ETF SPDR S&P 400 Mid Cap Value ETF Summary Prospectus-October 31, 2015 Before you invest in the SPDR S&P 400 Mid Cap Value ETF (the Fund ), you may want to review the Fund's prospectus and statement of additional

More information

Exchange Traded Funds and the UCITS Framework

Exchange Traded Funds and the UCITS Framework Exchange Traded Funds and the UCITS Framework 0 EXCHANGE TRADED FUNDS AND THE UCITS FRAMEWORK Introduction An Exchange Traded Fund ( ETF ) is an investment vehicle that, in its typical form, is designed

More information

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014

Product Key Facts. PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund. 22 December 2014 Issuer: PineBridge Investments Ireland Limited Product Key Facts PineBridge Global Funds PineBridge Global Emerging Markets Bond Fund 22 December 2014 This statement provides you with key information about

More information

investing mutual funds

investing mutual funds investing mutual funds our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety concerns and significant

More information

Section I. Investing In Common Stocks

Section I. Investing In Common Stocks Section I Investing In Common Stocks A corporation is a company that is a separate legal entity owned by stockholders. In other words, the corporation functions like a single person separate from its owners

More information

Schroder International Opportunities Portfolio - Schroder Asian Income (the Fund )

Schroder International Opportunities Portfolio - Schroder Asian Income (the Fund ) This Product Highlights Sheet is an important document. It highlights the key terms and risks of this investment product and complements the Prospectus¹. It is important to read the Prospectus before deciding

More information

Module 5 International ETFs

Module 5 International ETFs Module 5 International ETFs Course #: Title Topic 1: What are international ETFs?... 3 Exposure to international markets... 3 Why would I want exposure to overseas markets?... 3 Index-tracking... 3 Buying

More information

Structure Products Asia 2006

Structure Products Asia 2006 Structure Products Asia 2006 China Structured Products : Innovation and Evolution Chin-Chong Liew Partner and Head of Derivatives & Structured Products Asia (Ex-Japan) 23 November 2006 Hong Kong 2 Chinese

More information

BMO Global Asset Management (Asia) Limited 11 February 2016

BMO Global Asset Management (Asia) Limited 11 February 2016 Product Key Facts BMO MSCI EUROPE QUALITY HEDGED TO USD ETF BMO Global Asset Management (Asia) Limited 11 February 2016 Quick facts This is an exchange traded fund. This statement provides you with key

More information

RevenueShares ETF Trust

RevenueShares ETF Trust RevenueShares ETF Trust SUMMARY PROSPECTUS NOVEMBER 3, 2015 RevenueShares Global Growth Fund This summary prospectus is designed to provide investors with key fund information in a clear and concise format.

More information

Chapter 14: Savings and Investing Savings and Investing

Chapter 14: Savings and Investing Savings and Investing Savings and Investing Consumers can use any money left over from purchasing goods and services toward savings or investing. Saving means putting money aside for future use. Investing is using savings to

More information

GREATLINK GLOBAL TECHNOLOGY FUND (FUND DETAILS)

GREATLINK GLOBAL TECHNOLOGY FUND (FUND DETAILS) Fund Details version 24 (Errors & Omissions excepted) With effect from May 2015 GREATLINK GLOBAL TECHNOLOGY FUND (FUND DETAILS) The objective of the ILP Sub-Fund is to achieve long-term capital growth

More information