Chapter eleven Asset Markets
Chapter Eleven Asset Markets
Structure When to sell an asset? Rate-of-return Arbitrage Taxation of asset returns Applications Financial intermediaries
Structure When to sell an asset? –Rate-of-return Arbitrage Taxation of asset returns Applications Financial intermediaries
Assets(资产) An asset is a commodity that provides a flow of services over time E.g. a house, or a computer. A financial asset(金融资产) provides a flow of money over time a security
Assets （资产） An asset is a commodity that provides a flow of services over time. E.g. a house, or a computer. A financial asset （金融资产） provides a flow of money over time -- a security
Assets Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty
Assets Typically asset values are uncertain. Incorporating uncertainty is difficult at this stage so we will instead study assets assuming that we can see the future with perfect certainty
Selling an asset Q: When should an asset be sold? When its value is at a maximum? No. Why not?
Selling An Asset Q: When should an asset be sold? When its value is at a maximum? No. Why not?