Financial Markets教学课件电子教案全套课件.pptx

PowerPoint Slides forFinancial Markets and Institutions5th Edition;Chapter 1;Chapter Objectives;Overview of Financial Markets;Broad Classifications of Financial Markets Money versus Capital Markets Primary versus Secondary Markets Organized versus Over-the-Counter Markets;Primary vs. Secondary Markets Primary Market New issue of securities Exchange of funds for financial claim Funds for borrower; an IOU for lender ;Primary vs. Secondary Markets Secondary Market Trading previously issued securities No new funds for issuer Provides liquidity for seller;Money vs. Capital Markets Money Market Short-term, 1 year High quality issuers Debt only Primary market focus Liquid market--low returns ;Money vs. Capital Markets Capital Market Long-term, 1Yr Range of issuer quality Debt and equity Secondary market focus Financing investment--higher returns ;Organized vs. OTC Markets Organized Visible marketplace Members trade Securities listed Example: New York Stock Exchange;Organized vs. OTC Markets OTC Market Wired network of dealers No central, physical location;Money market securities Capital market securities Derivative securities Financial contracts whose value is derived from the values of underlying assets;;Security prices reflect available information New information is quickly included in security prices Investors balance liquidity, risk, and return needs ;Financial Market Regulation;Why Government Regulation? To Maintain Financial Market Stability Prevent market crashes Circuit breakers Federal Reserve discount window Prevent Inflation--Monetary policy Prevent Excessive Risk Taking by Financial Institutions ;Why Government Regulation? To Provide Consumer Protection Provide adequate disclosure Set rules for business conduct To Pursue Social Policies Transfer income and wealth Allocate saving to socially desirable areas Housing Student loans;Financial Market Globalization;Role of Financial Institutions in Financial Markets;Role of Financial Institutions in Financial Ma