(精选)金融学 2 Overview of the Financial System课件.ppt

2.4.14 Contractual Savings Institutions (CSIs) All CSIs acquire funds from clients at periodic intervals on a contractual basis and have fairly predictable future payout requirements. Pension and Government Retirement Funds hosted by corporations and state and local governments acquire funds through employee and employer payroll contributions, invest in corporate securities, and provide retirement income via annuities 2.4.15 Investment Intermediaries Finance Companies sell commercial paper (a short-term debt instrument) and issue bonds and stocks to raise funds to lend to consumers to buy durable goods, and to small businesses for operations Mutual Funds acquire funds by selling shares to individual investors (many of whose shares are held in retirement accounts) and use the proceeds to purchase large, diversified portfolios of stocks and bonds 2.4.16 Investment Intermediaries Money Market Mutual Funds acquire funds by selling checkable deposit-like shares to individual investors and use the proceeds to purchase highly liquid and safe short-term money market instruments 2.5 Regulatory Agencies 2.5.1 Regulation of Financial Markets Main Reasons for Regulation Increase Information to Investors Ensure the Soundness of Financial Intermediaries SEC home page 2.5.2 Regulation Reason: Increase Investor Information Asymmetric information in financial markets means that investors may be subject to adverse selection and moral hazard problems that may hinder the efficient operation of financial markets and may also keep investors away from financial markets The Securities and Exchange Commission (SEC) requires corporations issuing securities to disclose certain information about their sales, assets, and earnings to the public and restricts trading by the largest stockholders (known as insiders) in the corporation 2.5.4 Regulation Reason: Ensure Soundness of Financial Intermediaries Because providers of funds to financial intermediaries may not be able to assess whether t