Defining Finance Financial System When implementing decisions, people make use of the Financial System defined as the set of markets and other institutions used for financial contracting and exchange of assets and risks Examples: Markets:stock markets,bond markets,derivative markets Institutions:banks,insurance companies,financial advisory firms THE COURSE OF FINANCE 2017 SPRING 12
Defining Finance Financial System : When implementing decisions, people make use of the Financial System defined as the set of markets and other institutions used for financial contracting and exchange of assets and risks Examples: Markets: stock markets, bond markets, derivative markets Institutions：banks, insurance companies, financial advisory firms THE COURSE OF FINANCE 2017 SPRING •12
Defining Finance Financial theory financial decision making is directed by financial theory which consists of: the set of concepts that help to organize one's thinking about how to allocate resources over time the set of quantitative models used to help evaluate alternatives,make decisions,and implement them These concepts and models apply at all levels and scales of decision making THE COURSE OF FINANCE 2017 SPRING 13
Defining Finance Financial theory : financial decision making is directed by financial theory which consists of: the set of concepts that help to organize one’s thinking about how to allocate resources over time the set of quantitative models used to help evaluate alternatives, make decisions, and implement them These concepts and models apply at all levels and scales of decision making THE COURSE OF FINANCE 2017 SPRING •13
Defining Finance A basic tenet of finance is that the existence of economic organizations (e.g.firms and governments)facilitate the satisfaction of people's consumption preferences Conclude: Allocating resources over time Finance Happened in Financial system Directed by financial theory THE COURSE OF FINANCE 2017 SPRING 14
Defining Finance A basic tenet of finance is that the existence of economic organizations (e.g. firms and governments) facilitate the satisfaction of people’s consumption preferences Conclude: THE COURSE OF FINANCE 2017 SPRING •14 Finance • Allocating resources over time • Happened in Financial system • Directed by financial theory
1.2 Why Study Finance? To manage your personal resources To deal with the world of business To pursue interesting and rewarding career opportunities To make informed public choices as a citizen The intellectual challenge .Business .Financial investment .Making Money THE COURSE OF FINANCE 2017 SPRING 15
1.2 Why Study Finance? To manage your personal resources To deal with the world of business To pursue interesting and rewarding career opportunities To make informed public choices as a citizen The intellectual challenge THE COURSE OF FINANCE 2017 SPRING •15 •Making Money •Business •Financial investment +