金融市场和机制.doc

Chapter1 Role of Financial Markets and Institutions 1. Financial Market (Def.): A market in which financial assets (securities) such as stocks and bonds can be purchased or sold.资料个人收集整理，勿做商业用途 2. Broad Classifications of Financial Markets 1) Money versus Capital Markets n Money: Short-Term, 1 Year。 High Quality Issuers。 Debt Only。 Primary Market Focus。 Liquidity Market--Low Returns n Capital: Long-Term, 1Yr。 RangeofIssuerQuality。 Debt and Equity。 Secondary Market Focus。 Financing Investment--Higher Returns 2) Primary versus Secondary Markets n PRIMARY: New Issue of Securities。 Exchange of Funds for Financial Claim。 Funds for Borrower。 An IOU for Lender n SECONDARY: Trading Previously Issued Securities。 No New Funds for Issuer。 Provides Liquidity for Seller 3) Organized versus Over-the-Counter Markets n Organized: Visible Marketplace。 Members Trade。 Securities Listed。 New YorkStock Exchange n OTC: Wired Network of Dealers。 No Central, Physical Location。 All Securities Traded off the Exchanges 3. Securities Traded in Financial Markets 1) Money Market Securities Debt securities only 2) Capital market securities Debt and equity securities n Debt Securities: Debt securities are contractual obligations (IOU) of debtor (borrower) to creditor (lender)。资料个人收集整理，勿做商业用途 Investor receives interest。 Capital gain/loss when sold。 Maturity date n Equity Securities: Claim with ownership rights and responsibilities。 Investor receives dividends if declared。 Capital gain/loss when sold。 No maturity date—need market to sell 3) Derivative Securities n Financial contracts whose value is derived from the values of underlying assets资料个人收集整理，勿做商业用途 n Used for hedging (risk reduction) and speculation (risk seeking)资料个人收集整理，勿做商业用途 4. Types of Financial Institutions 1) Types of Depository Financial Institutions Commercial Banks。 Savings Institutions。 Credit Unions 2) Types of Non-depository Financial Institutions Insurance comp