金融市场与机构Chapter01.ppt

Why study Financial Markets and Institutions? They are the cornerstones of the overall financial system in which financial managers operate Individuals use both for investing Corporations and governments use both for financing Overview of Financial Markets Primary Markets versus Secondary Markets Money Markets versus Capital Markets Foreign Exchange Markets Primary Markets versus Secondary Markets Primary Markets markets in which users of funds (e.g. corporations, governments) raise funds by issuing financial instruments (e.g. stocks and bonds) Secondary Markets markets where financial instruments are traded among investors (e.g. NYSE, NASDAQ) Money Markets versus Capital Markets Money Markets markets that trade debt securities with maturities of one year or less (e.g. CD’s, U.S. Treasury bills) Capital Markets markets that trade debt (bonds) and equity (stock) instruments with maturities of more than one year Money Market Instruments Outstanding, 1990-2004 ($Bn) Capital Market Instruments Outstanding, 1990-2004 ($Bn) Foreign Exchange Markets “FX” markets deal in trading one currency for another (e.g. dollar for yen) The “spot” FX transaction involves the immediate exchange of currencies at the current exchange rate The “forward” FX transaction involves the exchange of currencies at a specified date in the future and at a specified exchange rate Derivative Security Markets The markets in which derivative securities trade. Derivative Security An agreement between two parties to exchange a standard quantity of an asset at a predetermined price on a specified date in the future. Overview of Financial Institutions Institutions that perform the essential function of channeling funds from those with surplus funds to those with shortages of funds (e.g. banks, thrifts, insurance companies, securities firms and investment banks, finance companies, mutual funds, pension funds) Flow of Funds in a World without FIs: Direct Transfer Flow of Funds in a world with FIs: Indirect