金融市场英文课件.ppt

Financial Markets Chapter 1 Functions of Financial MarketsChapter 2 Money MarketsChapter 3 Capital MarketsChapter 4 Foreign Exchange Markets Chapter one functions of financial markets What is finance? ?The act of providing money, capital or other financial resources to assist in facilitating a loan or a sale. This term is commonly used within the financial industry, which includes areas such as banking and accounting. The functions of financial market Facilitate the flow of funds from surplus units to deficit ones. Facilitate financing and investing [in turn, the lenders expect some compensation (interest or dividends)] Facilitate the raising of capital (in the capital market), the transfer of risk (in the derivative market), and international trade (in the foreign exchange market) Chapter Two Money Markets Definition of money market Money market: is a financial market in which only short-term debt instrument (maturity of less one year) are traded (notes, bonds, certificates, mortgages, leases ). Characteristics of money market instruments Sold in large denomination The financial instruments mature in one year (most instrument mature in less than 120 days ); have low default risk; Types of instruments in the money market: a.Treasury Bills (T-bills) b.Inter-bank markets c. Commercial paper tes d.NCDs or CDs (a bearer instrument) e.Bank’s acceptance f.Repo (repurchase agreement) g.Eurodollars Functions of money market Money market is important for promoting the liquidity of capital because it allows the companies with a temporary cash surplus to invest in short-term securities and the companies with a temporary cash shortfall to borrow funds on a short-term basis Chapter Three Capital Market The definition Capital market: is a market in which long-term debt (maturity of one year or longer ) and equity instrument are trade (stock, long-term debt). The characteristics of capital market usually used for longer-term investment projec