Introduction to Financial Markets
Financial Markets Education
Download the full document at: www.gazhoo.com

Financial Markets Education
Financial Markets Education provides instruction on all aspects
of banking and finance for UBS employees and for our top
clients.
Europe United States APAC
Joe Troccolo Joe Bonin Onn Chan
London Stamford Singapore
+44 20 7568 0735 +1 203 719 6507 +65 6836 5708
joe.troccolo@ubs.com joe.bonin@ubs.com onn.chan@ubs.com
Walter Braegger Kai-Hing Lum
London Tokyo
+44 20 7568 8938 +81 352 08 6494
walter.braegger@ubs.com kai-hing.lum@ubs.com
Spencer Morris
London
+44 20 7568 8938
spencer.morris@ubs.com
Download the full document at: www.gazhoo.com 1

This class
♦ Introduction
♦ Issuers & Investors
♦ Equities and Indexes
♦ Fixed Income Markets
♦ Foreign Exchange Markets
♦ All About UBS
Download the full document at: www.gazhoo.com
2

Markets
♦ Market: an institution joining buyers and sellers
[need not be “a” location]
♦ Who are the buyers and sellers?
♦ Financial markets are mechanisms for the flow of
– money
– risk
Download the full document at: www.gazhoo.com
3

Markets: the buyer, the seller & the price
♦ How much would you pay for this ticket?
♦ What is its fair value?
Download the full document at: www.gazhoo.com
4

Value and price – the official definition
♦ Fair market value. Fair market value is the price that [property] would sell
for on the open market. It is the price that would be agreed on between a
willing buyer and a willing seller, with neither being required to act, and both
having reasonable knowledge of the relevant facts.
Download the full document at: www.gazhoo.com 5

A market price
Download the full document at: www.gazhoo.com
6

A stock market, then
“Sshh!”
“Buy! Sell! Buy! Sell!”
Download the full document at: www.gazhoo.com
7

And now (the information processor)
Download the full document at: www.gazhoo.com
8

Who are the players?
♦ Who are the players in the financial markets?
Download the full document at: www.gazhoo.com
9

And what do they do?
♦ Why do they need to be involved in the financial markets?
Download the full document at: www.gazhoo.com 10

Financial Markets – a model
Liabilities
Individuals Corporates Governments
Mortgages Debt and Risk
Commercial equity
and personal transformation
loans issuance
loans products
Securities & money
Banks markets ‘Hedging’ Markets
-commercial and retail banks -cash, CP, bonds, equities -foreign exchange
-deposit-taking institutions -primary and secondary markets -interest rates derivatives
-(inc. building societies in UK) -disintermediation of banks -equity derivatives
-origination and distribution
-brokers and dealers
Debt and Risk
equity transformation
Deposits purchases products
Asset Managers
-pension funds
-insurance companies
-mutual funds / unit trusts (CIVs)
Assets
Individuals Corporates Governments
Download the full document at: www.gazhoo.com 11