[资本市场和金融机构].1-1.pptVIP

CAPITAL MARKETS AND FINANCIAL INSTITUTIONS (BUS 498) By ARTURO RUBALCAVA This course examines: The way in which Financial Markets function The pivotal role played by Financial institutions Main emphasis: Coverage of Canadian markets and institutions Coverage of risk measurement and management Risk-return tradeoffs available to investors. Introduction Financial System Financial Markets Financial Institutions Economic functions of FIs Financial Innovation Regulation of the Financial System Conclusions 1. Financial System Its main role is to gather money from parties that have more money than they need right now and route those funds to those that can use them for either business or consumer expenditures. This is facilitated by Financial Markets and Financial Institutions 2. Financial Markets Markets where parties buy and sell financial instruments including stocks, bonds, options, foreign exchange contracts. Example: BCE needs to finance a $400 million telecom project. It can get the money via: A) Financial Markets by borrowing directly from investors (e.g.,households) B) By borrowing indirectly from households via a Financial Intermediary (e.g., a commercial bank). Financial markets: Classification Money Market. Short term debt instruments Maturity of securities 1 year E.g., commercial paper, T-bills Capital Markets Maturity of securities 1 year Debt Markets (Government Securities Market, Municipal Bond Markets, Corporate Debt Markets) Stock Market (TSX), Depositary Receipts Market Foreign Exchange markets. Markets in which foreign currencies are traded Other Markets: Financial Derivative Markets Financial Markets: Alternative classification Primary Market. Market for new issue of securities sold to initial buyers by investment bankers. Secondary Market. Market in which already-issued securities are traded among investors Brokers. Match buyers and sellers for a fee. Dealers. Sell and buy securities from buyers and se