MBA-Financial Markets and Institutions 6th_ 教材PPT_Chapter_1.pptVIP

Copyright ? 2009 Pearson Prentice Hall. All rights reserved. Chapter 1 Introduction to Financial Markets Questions raised Why Study Financial Markets? Applied Managerial Perspective? How Will We Study Financial Markets? Why Study Financial Markets? Types of Financial markets bond stock Mortgage Money Foreign exchange are crucial in our economy. Why Study Financial Markets? What are their roles in the economy? channel funds from savers to investors, thereby promoting economic efficiency. market activity affects personal wealth, the behavior of business firms, and economy as a whole 1-* Why Study Financial Markets? What are their roles in the economy? Well functioning financial markets, such as the bond market, stock market, and foreign exchange market, are key factors in producing high economic growth. Why Study Financial Markets? Debt Markets Interest Rates Debt markets, or bond markets, allow governments, corporations, and individuals to borrow to finance activities. borrowers issue a security, called a bond, that promises the timely payment of interest and principal over some specific time horizon. The interest rate is the cost of borrowing. Why Study Financial Markets? Debt Markets Interest Rates Many different types of market interest rates mortgage rates car loan rates credit card rates, etc. The level of these rates are important. For example, mortgage rates in the early part of 1983 exceeded 13%. Financing a house was quite expensive at this time. Why Study Financial Markets? Debt Markets Interest Rates Because interest rates are important to individuals and business, understanding the history of interest rates is beneficial. Bond Market and Interest Rates Complete list of interest rates/releases Why Study Financial Markets? The Stock Market The stock market is the market where common stock (or just stock), representing ownership in a company, are traded. Companies initially sell stock (in the primary market) to raise money. But after t