Introduce to finance(复习资料).docxVIP

Introduce to finance 复习 Chap 1 Role of financial Market and Institutions A financial market is a market in which financial assets(securities)such as stocks and bonds can be purchased or sold. Financial markets facilitate the flow of funds and thereby facilitate financing and investing by households, firms, and government agencies. Overview of Financial Markets These participants that provide funds are called surplus units(盈余方), while participants that enter financial market to obtain funds are called deficit units(赤字方). The Fed plays a major role in the financial markets because it controls the US money supply and participates in the regulation of depository institutions. Money versus Capital Markets Financial markets that facilitate the flow of short-term funds (with maturities of less than one year) are known as money markets, while those that facilitate the flow of long-term funds are known as capital markets.(从企业的角度来看，security 属于capital market) Primary versus Secondary Markets Primary markets(初级市场) facilitate the issuance（发行） of new securities, while secondary markets （二级市场）facilitate the trading of existing securities. Liquidity（流动性）, is the degree to which securities can easily be liquidated(sold) without a loss of value. Organized versus Over-the-Counter Markets Organized exchange（交易所市场）：visible marketplace for secondary market transactions. Over-the-counter(OTC) market(场外交易所)：telecommunications network. Securities Traded in Financial Markets Money Market Securities Money market securities are debt securities that have a maturity of one year or less. They generally have a relatively high  = 1 \* GB3 ①degree of liquidity. Money market securities tend to have a  = 2 \* GB3 ②low expected return but also  = 3 \* GB3 ③low degree of risk.(characteristics of money market securities) Capital Market Securities Three common types of capital market securities: 1) bonds 2) mortgages（抵押贷款）3）stocks Bonds and Mortgages Bonds are long-term debt obligations issued by