[资本市脾场和金融机构]6.pptVIP

4. Economic functions of FIs A) Brokerage B) Asset/Risk transformation Benefits: Increased liquidity, Price risk reduction Decreased costs Information costs Transaction Costs ?Efficiency in the financial markets C) Other functions  A) Brokerage: Providing information and transaction services Examples Investment analysts, stock brokers Insurance brokers B) Asset/risk transformation The FI transforms a financial claim in a different financial claim with different risk characteristics Technically: The FI purchase financial claims -primary securities (issued by corpor