Notes
Page 1
Economics of Capital Markets
Page 1Version 1.0 Outline
Structure and Function of Capital MarketsStructure and Function of Capital MarketsMajor Topics
– Financial Markets Structure– Financial Economics– Capital Markets– Basic Securities– Introduction to Pricing– Sizing the Capital Markets– Studying Capital Markets– Function of Capital Markets
Economics of Capital Markets
Page 2Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets StructureStructure and Function of Capital MarketsFinancial Markets Structure
Recall that physical capital is traded in the funds, or financial, markets and consumption is smoothed through the use of the financial markets
Notes
Page 2
Economics of Capital Markets
Page 3Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Financial markets are the focal point for much of our economic operationsFrom an economic growth perspective, they are viewed as the main driver allowing growth
Economics of Capital Markets
Page 4Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
From an economic growth perspective (Continued)
– Sir J.R. Hicks
– J. Schumpeter
Notes
Page 3
Economics of Capital Markets
Page 5Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
From an economic growth perspective (Continued)
– There is a preponderance of empirical evidence that there is a positive first-order relationship between financial development and economic growth
Economics of Capital Markets
Page 6Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Financial Markets
Capital Market Credit Market Money Market
- Claims or OwnershipTraded
- More Than One YearMaturity
- Stocks, Bonds, Futures,Options
- Standardized- Organized Exchanges
- Facilitates Borrowingand Lending
- Combination Of Short-And Long-term
- Nonstandardized- Usually Not Tradable- Financial Intermediaries
- Money and Short-termNear Monies
- Less Than One Year Maturity- Money, Fed Funds, T-Bills- Financial Intermediaries AndFED
- Allocates Funds- Sets Prices
Notes
Page 4
Economics of Capital Markets
Page 7Version 1.0 Outline
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Structure and Function of Capital MarketsFinancial Markets Structure (Continued)
Financial Markets
Capital Market Credit Market Money Market
Only market in whichlong-term, impersonalinvestments and borrowings can occur
Long-term and short-term personal investments and borrowings
Strictly short-term findstransfers
Economics of Capital Markets
Page 8Version 1.0 Outline
Structure and Function of Capital MarketsFinancial EconomicsStructure and Function of Capital MarketsFinancial Economics
Financial Economics studies how financial markets impact allocations via pricing of financial assets or securities– Methodology: micro-based via close substitutes– Capital markets one component: long-term
Notes
Page 5
Economics of Capital Markets
Page 9Version 1.0 Outline
Structure and Function of Capital MarketsCapital MarketsStructure and Function of Capital MarketsCapital Markets
Terms for holding claims set in capital markets
Economics of Capital Markets
Page 10Version 1.0 Outline
Structure and Function of Capital MarketsCapital Markets (Continued)
Structure and Function of Capital MarketsCapital Markets (Continued)
A function of capital markets and contracts is to establish and provide for the exchange of claims to assets, the income they generate and the value or price of those claims
Notes
Page 6
Economics of Capital Markets
Page 11Version 1.0 Outline
Structure and Function of Capital MarketsCapital Markets (Continued)
Structure and Function of Capital MarketsCapital Markets (Continued)
CapitalMarkets
Set Value DetermineTitle
- At a Point in Time- Capitalized Income Stream
- Assets- Income
Only market in whichlong-term, impersonalinvestments and borrowings can occur
Economics of Capital Markets
Page 12Version 1.0 Outline
Structure and Function of Capital MarketsCapital Markets (Continued)
Structure and Function of Capital MarketsCapital Markets (Continued)
Financial Markets
Capital Market Credit Market Money Market
- Long-term- Standardized- Organized Exchanges
- Nonstandardized- Financial Intermediaries
- Short-term Monies-Financial Intermediaries andFED
Bring Borrowers and Lenders TogetherBring Borrowers and Lenders Together
Sets Value, DeterminesSets Value, DeterminesTitleTitle
No Ownership Claims to Assets No Ownership Claims to Assets DeterminedDetermined
Jump to slide 20
Notes
Page 7
Economics of Capital Markets
Page 13Version 1.0 Outline
Structure and Function of Capital MarketsCapital Markets (Continued)
Structure and Function of Capital MarketsCapital Markets (Continued)
Trading in terms of new issues and outstanding issues of claims– Exchange of outstanding issues represents
transfer of property rights– Exchange of new issues represents transfer of
funds from savers to borrowers
Economics of Capital Markets
Page 14Version 1.0 Outline
Structure and Function of Capital MarketsBasic SecuritiesStructure and Function of Capital MarketsBasic Securities
Equities or stock– Equities residual claims on “risky” and
uncertain future income stream of assets– Holders have incentive to promote - or push
company to promote - efficient use of assets to minimize costs
– Example: common stock
Notes
Page 8
Economics of Capital Markets
Page 15Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
Types of equities– Common stock
» Last to be paid on dissolution of firm
– Preferred stock» Reduces “risks” to investor compared to common
stock holder, but...– Preferred stock adds constraints on the firm
– Would expect fewer issues of preferred stock than common stock
Economics of Capital Markets
Page 16Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
Common stock income components– Dividend payments
» Dividends are profits distributed to owners; i.e., holders of stock
– Capital gains and losses» Stock price changes
Notes
Page 9
Economics of Capital Markets
Page 17Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
Debt– Claim to a prespecified portion of future
income stream of an asset» Portion: not whole income stream of asset» Prespecified: know portion before time
– Example: bonds» Value depends on value of underlying asset; i.e., its
income stream– If income stream is “risky”, bond is “risky”
Economics of Capital Markets
Page 18Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
Bond income components– Coupon payments:
» Fixed income stream» Based on
– Coupon rate – Fixed at time of issue
– Face value of bond (F)– What it is worth– Usually $1000 face value
– Repayment of loan: F
) (λ
F C λ=
Notes
Page 10
Economics of Capital Markets
Page 19Version 1.0 Outline
Structure and Function of Capital Markets Basic Securities (Continued)
Structure and Function of Capital Markets Basic Securities (Continued)
Example coupon bond– Face value: amount of bond
» Example: $1000
– Coupon rate: rate attached to bond at issuance and is amount issuer promises to pay each period
» Example: 6%
– Coupon amount: $1000*0.06 = $60
Economics of Capital Markets
Page 20Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
Simple equationsIncome from stocks:
Income = Dividend Stream + Gains/Losses
Income from bonds:
Income = Coupon Payments + Repayment
Notes
Page 11
Economics of Capital Markets
Page 21Version 1.0 Outline
Structure and Function of Capital MarketsBasic Securities (Continued)
Structure and Function of Capital MarketsBasic Securities (Continued)
The dollar income from any security is the dollar return from that security– Denote the dollar return in period t by Rt
Economics of Capital Markets
Page 22Version 1.0 Outline
Structure and Function of Capital Markets Introduction to PricingStructure and Function of Capital Markets Introduction to Pricing
Introduce simple pricing concepts– Begin with bonds and then do stocks– Assumptions
» No risk– Adjust for risk later
» No inflation– Adjust for inflation later– All dollar amounts are in real terms
Notes
Page 12
Economics of Capital Markets
Page 23Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Bond prices set where suppliers and demanders agree– Can prove that bond price is present value of
future expected coupon amounts– Use infinite-lived bond called a perpetuity or
consol
Economics of Capital Markets
Page 24Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Bond price is
where C is the constant real coupon amountand rf
B is the bond real discount factor devoid of risk– Follows from simple supply and demand
framework: agreement at the margin
P Cr
BfB=
Notes
Page 13
Economics of Capital Markets
Page 25Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Key observation– Price of bond and real interest rate vary
inversely» Know one, then other is known automatically» Only need to know one of these
– Bond real discount factor is called the yield or rate of return - it is an interest rate
– Clearly
B
Bf P
Cr =
Economics of Capital Markets
Page 26Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Stock price is similar– Present value of dividends plus value of stock
tomorrow if sold– Assume just one holding period so that
where D1 is the real dividend tomorrow, PS1 Is
price tomorrow and rfS is the stock real discount
factor devoid of risk
P D1 r
P1 rS
0 1
fS
S1
fS=
++
+
Notes
Page 14
Economics of Capital Markets
Page 27Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Simple algebra shows that stock discount factor is
– Stock real discount factor is called the rate of return - it is an interest rate
r DP
P PPf
S 1
S0
S1
S0
S0= +−
Dividend %AppreciationYield In Value
Economics of Capital Markets
Page 28Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Notice that the rates of return for stocks and bonds were presented as different amounts
– What is their relationship?» The two rates of return must be equal
– If not, then rational investor can earn a profit by buying the higher yielding security driving its price up and the rate of return down; conversely for the lower yielding security
– Process is called arbitrage
r and rfS
fB
Notes
Page 15
Economics of Capital Markets
Page 29Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Law of One Rate of Return– Must have just one rate of return in the market– Therefore,
– Actual rates of return will differ at times because there are different “drivers” for each market (e.g., economy, policy, psychology)
fBf
Sf r r r ==
Economics of Capital Markets
Page 30Version 1.0 Outline
Structure and Function of Capital Markets Introduction to Pricing (Continued)
Structure and Function of Capital Markets Introduction to Pricing (Continued)
For stocks and bonds, basically have
r turnPf
Today=
$ Re
Notes
Page 16
Economics of Capital Markets
Page 31Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital MarketsStructure and Function of Capital MarketsSizing the Capital Markets
1994
Straight Corp$367.4B
Conv$4.7B
Asset Backed$253.4B
Debt$625.5B
Preferred$15.5B
Common$51.6B
Equity$77.1B
Underwritten$702.5B
Debt$117.1B
Equity$23.9B
Private Placement$141.0B
Capital Market(Debt + Equity)
$843.5B
Economics of Capital Markets
Page 32Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$ B
illion
s
1980 1982 1984 1986 1988 1990 1992 1994
Total Underwritten Private
Value of US Corp. Underwritingsand Private Placements
1994($ Billions)
Total Under-written
PrivatePlacements
$843.5 $702.5 $141.0
Notes
Page 17
Economics of Capital Markets
Page 33Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$50
$100
$150
$200
$ Bi
llions
1980 1982 1984 1986 1988 1990 1992 1994
Total Debt Equity
Value of US Private Placements
1994($ Billions)
Total Debt Equity$141.0 $117.1 $23.9
Economics of Capital Markets
Page 34Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$200
$400
$600
$800
$1,000
$1,200
$ B
illion
s
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Total Total Debt Total Equity
Total Value of US Corp. Underwritings
1994($ Billions)
Total Debt Equity$702.5 $625.5 $77.1
Notes
Page 18
Economics of Capital Markets
Page 35Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$200
$400
$600
$800
$1,000
$ B
illio
ns
1980 1982 1984 1986 1988 1990 1992 1994
Straight Corp. Debt Conv. Debt Asset Backed Debt Total Debt
Total Debt Underwritten
1994($ Billions)
Total St. Corp. Conv.Corp.
AssetBacked
$702.5 $367.4 $4.7 $253.4
Economics of Capital Markets
Page 36Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$20
$40
$60
$80
$100
$120
$140
$ B
illio
ns
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Pref. Stock Common Stock Total Equity
Total Equity Underwritten1994
($ Billions)
Total Preferred Common$77.1 $15.5 $61.6
Notes
Page 19
Economics of Capital Markets
Page 37Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$ B
illio
ns
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Corp. Equities Corp. Bonds US Gov't Sec. Mun. Bonds
Equity and Debt Outstanding
Economics of Capital Markets
Page 38Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Corp. Equities (39.51%)
Mun. Bonds (7.86%)
Corp. Bonds (15.79%)
US Gov't Sec. (36.85%)
1994 Equity and DebtOutstanding
Notes
Page 20
Economics of Capital Markets
Page 39Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Households$2913B
Private Pension Funds$1047B
Public Pension Funds$520B
Mutual Funds$738B
Closed End Funds$33B
Foreign$341B
Life Ins. Cos.$159B
Other Ins. Cos.$105B
Bank Personal Trusts$156B
Brokers/Dealers$20B
Savings Inst.$10B
Commercial Banks$7B
Institutions$3136B
Holders of USEquities Outstanding
$6049B
Economics of Capital Markets
Page 40Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
40.0%
45.0%
50.0%
55.0%
60.0%
Per
cent
1980 1982 1984 1986 1988 1990 1992 1994
Households Institutions
Holdings of US Equities Outstanding(% of Market Value)
Households Institutions48.2% 51.8%
Notes
Page 21
Economics of Capital Markets
Page 41Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Per
ecnt
1980 1982 1984 1986 1988 1990 1992 1994
Equities Bk. Dep/CDs Mut. Funds US Gov't Secs.
Muni. Bonds Money Mkt. Funds Corp. Bonds
Share of HouseholdLiquid Financial Assets
Economics of Capital Markets
Page 42Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Equities (33.57%)US Gov't Secs. (12.49%)
Muni. Bonds (4.70%)Money Mkt. Funds (4.10%)
Corp. Bonds (2.30%)
Bk. Dep/CDs (31.67%)
Mut. Funds (11.19%)
1994 Share of HouseholdFinancial Assets
Notes
Page 22
Economics of Capital Markets
Page 43Version 1.0 Outline
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Structure and Function of Capital MarketsSizing the Capital Markets (Continued)
Household ownership characteristics - 1990– Number of individual shareholders: 51,440K
» Female: 17,750K» Male: 30,220K
– Adult shareholder incidence: 1 in 4– Median household income: $43,800– Median age: 43– Median portfolio: $11,400
Economics of Capital Markets
Page 44Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets Structure and Function of Capital MarketsStudying Capital Markets
Studying and understanding capital markets goes beyond just understanding how terms for holding capital are set– Major issue is resource allocation, but there are
other issues
Notes
Page 23
Economics of Capital Markets
Page 45Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
The capital markets, especially Wall Street, exert large influence on investment decisions of firms– Firms have been accused of favoring short-term
investments just to meet investor demands– Implication: innovation and R&D stifled
negatively impacting long-term economic growth and competitiveness
Economics of Capital Markets
Page 46Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Understanding capital markets, especially global capital markets, important for understanding international developments and U.S. competitiveness– Capital markets not restricted to national
borders– Investments can take place electronically– One implication: trying to regulate or control
capital markets next to impossible
Notes
Page 24
Economics of Capital Markets
Page 47Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Understanding capital markets (Continued)
– Example» Japanese government tried to prevent trading of
some “modern complex financial derivatives” tied to the Nikkei in Tokyo
» Trading simply moved to Singapore» A trader for Barings Securities (Nick Leeson)
Placed A $29B bet in Singapore on the Nikkei (and lost!)
– Barings, one of the world’s oldest banks, collapsed
Economics of Capital Markets
Page 48Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Understanding capital markets (Continued)
– Everyone effectively borrows capital on an “equal-access basis” on the world capital markets in New York, London, Tokyo
» For investing, “there are no rich or poor countries.”
Notes
Page 25
Economics of Capital Markets
Page 49Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Understanding capital markets (Continued)
– Global capital markets and electronic trading systems enable huge sums of money to move around the world quickly
» On a normal day, world capital markets move $1.3Tbut world’s exports are only $3T in a year
» In 2 days, the world’s capital markets can move as much money as all economies can move in a year
Economics of Capital Markets
Page 50Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Understanding capital markets (Continued)
– Problem this creates» Linkages make potential crashes potentially larger
and more far reaching than previous crashes
Notes
Page 26
Economics of Capital Markets
Page 51Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Capital markets and crashes– Dramatic movements in the capital markets, in
particular, the stock market, can have big impact on the business cycle and growth
» We are all aware of the 1929 Stock Market Crash» In 1987, the stock market fell but was so short-lived
that it had minimal impact– We will discuss both briefly later in course
Economics of Capital Markets
Page 52Version 1.0 Outline
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Structure and Function of Capital MarketsStudying Capital Markets (Continued)
Capital markets and crashes (Continued)
– From 12/89 To 8/92, at least, the Nikkei fell from 38916 to 14309
» Bigger decline than American stock market decline in 1929 and 1932
» Led to recession in Japan that seems to still be continuing
Notes
Page 27
Economics of Capital Markets
Page 53Version 1.0 Outline
Structure and Function of Capital MarketsFunction of Capital MarketsStructure and Function of Capital MarketsFunction of Capital Markets
Previously viewed the capital markets as a way to bring borrowers and lenders of loanable funds together– Naive view of this market since all markets
bring two parties together– Capital markets do more...
Capital Markets manage riskCapital Markets manage risk
Economics of Capital Markets
Page 54Version 1.0 Outline
Structure and Function of Capital MarketsFunction of Capital Markets (Continued)
Structure and Function of Capital MarketsFunction of Capital Markets (Continued)
To understand the management function, we must understand…– The operations of capital markets– The concepts of risk and uncertainty
Notes
Page 28
Economics of Capital Markets
Page 55Version 1.0 Outline
Structure and Function of Capital MarketsReview QuestionsStructure and Function of Capital MarketsReview Questions
Describe the structure of Financial Markets and the individual submarkets.How does the capital market differ from the credit and money markets?Discuss the international linkages in the capital markets. What is the function of the financial markets?Describe some common income streams.
Economics of Capital Markets
Page 56Version 1.0 Outline
Structure and Function of Capital MarketsReview Questions (Continued)
Structure and Function of Capital MarketsReview Questions (Continued)
Describe the basic structure of the capital markets.Distinguish between common and preferred stock.What is debt?
Notes
Page 29
Economics of Capital Markets
Page 57Version 1.0 Outline
Structure and Function of Capital MarketsKey Concepts and TermsStructure and Function of Capital MarketsKey Concepts and Terms
Capital MarketsDebtFinancial EconomicsFinancial MarketsMoney MarketsNew issuesOutstanding issuesPreferred and common stock
Economics of Capital Markets
Page 58Version 1.0 Outline
Structure and Function of Capital MarketsSuggested ReadingsStructure and Function of Capital MarketsSuggested Readings
Friedman, B. M. 1987. “Capital, Credit and Money Markets” in The New Palgrave.Hakansson, N.H. 1987. “Financial Markets” in The NewPalgraveHicks, J.R. 1946. Value and Capital. 2nd. ed. London: Oxford Un. Press.Hirshleifer, J. 1970. Investment, Interest and Capital. Englewood Cliffs, NJ: Prentice-Hall.Ross, S.A. 1987. “Finance” in The New PalgraveTobin, J. 1987. “Financial Intermediaries” in The NewPalgrave
Notes
Page 30
Economics of Capital Markets
Page 59Version 1.0 Outline
Structure and Function of Capital MarketsSuggested Readings (Continued)
Structure and Function of Capital MarketsSuggested Readings (Continued)
Campbell, T.S. 1982. Financial Institutions, Markets, and Economic Activity. NY: McGraw-Hill.