lecture 2: Financial Markets and Institutions Objectives Understanding the functions of the financial system Knowing financial markets Knowing financial institutions Knowing rates of return THE COURSE OF FINANCE 2017 SPRING SJTU
lecture 2: Financial Markets and Institutions THE COURSE OF FINANCE 2017 SPRING SJTU 1 Objectives Understanding the functions of the financial system Knowing financial markets Knowing financial institutions Knowing rates of return
Chapter 2 Contents 2.1 What is a 2.7 Financial Intermediaries Financial System? 2.8 Financial Infrastructure 2.2 The Flow of Funds and Regulation 2.3 The Functional 2.9 Governmental Quasi Perspective Governmental Organizations 2.4 Financial Innovation the “Invisible Hand” 2.5 Financial Markets 2.6 Financial Market Rates THE COURSE OF FINANCE 2017 SPRING SJTU 2
Chapter 2 Contents 2.1 What is a Financial System? 2.2 The Flow of Funds 2.3 The Functional Perspective 2.4 Financial Innovation & the “Invisible Hand” 2.5 Financial Markets 2.6 Financial Market Rates 2.7 Financial Intermediaries 2.8 Financial Infrastructure and Regulation 2.9 Governmental & Quasi- Governmental Organizations THE COURSE OF FINANCE 2017 SPRING SJTU 2
The Financial System Financial decisions are made within the context of a financial system The financial system both constrains and enables the decision maker This chapter provides a framework for understanding how financial systems work. THE COURSE OF FINANCE 2017 SPRING SJTU 3
The Financial System Financial decisions are made within the context of a financial system The financial system both constrains and enables the decision maker This chapter provides a framework for understanding how financial systems work. THE COURSE OF FINANCE 2017 SPRING SJTU 3
2.1 What is the Financial System? A Financial System is comprised of Markets Intermediaries service firms Regulating institutions Financial activities such as the financial decisions of households,business firms,and governments are implemented in financial systems. THE COURSE OF FINANCE 2017 SPRING SJTU 4
2.1 What is the Financial System? A Financial System is comprised of Markets Intermediaries service firms Regulating institutions Financial activities such as the financial decisions of households, business firms, and governments are implemented in financial systems. THE COURSE OF FINANCE 2017 SPRING SJTU 4
Geography of Financial Markets some markets for a particular market instrument may have a well defined geographic location other market instruments are traded on over-the-counter or off-exchange markets for bonds,stocks,and foreign exchange Example:NASDAQ(National Association of Securities Dealers Automated Quotations);NEEQ(National Equities Exchange and Quotations新三板) THE COURSE OF FINANCE 2017 SPRING SJTU 5
Geography of Financial Markets some markets for a particular market instrument may have a well defined geographic location other market instruments are traded on over-the-counter or off-exchange markets for bonds, stocks, and foreign exchange Example: NASDAQ(National Association of Securities Dealers Automated Quotations); NEEQ(National Equities Exchange and Quotations新三板) THE COURSE OF FINANCE 2017 SPRING SJTU 5