Funds Flow via Markets and Intermediaries Markets Deficit Units Surplus Units Intermediaries Automobile financial company THE COURSE OF FINANCE 2017 SPRING SJTU 11
Funds Flow via Markets and Intermediaries THE COURSE OF FINANCE 2017 SPRING SJTU 11 Markets Intermediaries Surplus Units Deficit Units Automobile financial company
Funds Flow via both Markets and Intermediaries Markets Surplus Units Deficit Units Intermediaries Mutual funds THE COURSE OF FINANCE 2017 SPRING SJTU 12
Funds Flow via both Markets and Intermediaries THE COURSE OF FINANCE 2017 SPRING SJTU 12 Markets Intermediaries Surplus Units Deficit Units Mutual funds
Funds Flow: Disintermediation Sometimes the cost of using markets and intermediaries cannot be justified,and surplus units and deficit units contract directly at its discretion,the deficit unit may repurchase contracts before their maturity,(at a proper discount), to avoid disrupting secondary markets,and to add liquidity THE COURSE OF FINANCE 2017 SPRING SJTU 13
Funds Flow: Disintermediation Sometimes the cost of using markets and intermediaries cannot be justified, and surplus units and deficit units contract directly at its discretion, the deficit unit may repurchase contracts before their maturity, (at a proper discount), to avoid disrupting secondary markets, and to add liquidity THE COURSE OF FINANCE 2017 SPRING SJTU 13
Funds Flow: Disintermediation Markets Surplus Units Deficit Units Intermediaries THE COURSE OF FINANCE 2017 SPRING SJTU 14
Funds Flow: Disintermediation THE COURSE OF FINANCE 2017 SPRING SJTU 14 Markets Surplus Units Deficit Units Intermediaries Surplus Units Deficit Units
2.3 Six Key Financial Functions: Transferring Resources Across Time Space Managing Risk Clearing and Settling Payments Pooling Resources and Subdividing Shares Providing Information Dealing with Incentive Problems THE COURSE OF FINANCE 2017 SPRING SJTU 15
2.3 Six Key Financial Functions: Transferring Resources Across Time & Space Managing Risk Clearing and Settling Payments Pooling Resources and Subdividing Shares Providing Information Dealing with Incentive Problems THE COURSE OF FINANCE 2017 SPRING SJTU 15