Financial system is a system that aims at establishing and providing a regular, smooth, efficient and cost effective linkage between depositors and investors
This chapter discusses why studying money, banking, and financial markets is important: to understand how financial markets work; how banks and other financial institutions operate; and the role of monetary policy. It provides an overview of key concepts like financial markets, the bond market, stock market, financial institutions, and past financial crises.
This document provides an overview of financial markets and institutions. It discusses the role and functions of financial markets in facilitating the transfer of funds from surplus units to deficit units. It also describes different types of financial markets, securities traded in these markets such as money market securities, bonds, stocks and derivatives. Finally, it examines the roles of various financial institutions like commercial banks, savings institutions, mutual funds, securities firms, insurance companies and pension funds in financial markets. It also discusses competition and consolidation trends in the financial industry.
Ppt money and banking (depository and depository institution , insurance co.)ibrahim ashraf
This document defines and describes different types of financial institutions. It identifies depository institutions like commercial banks, credit unions, and savings and loans that accept deposits, and non-depository institutions like insurance companies, pension funds, and mutual funds that do not accept deposits. It provides details on the purpose and services provided by these various financial institutions.
This document provides an overview of chapter one of a course on financial markets and institutions. It defines a financial system and describes key components including financial markets, instruments, and participants. It discusses various types of financial markets like money markets, bond markets, stock markets, and derivatives markets. It also defines different financial instruments such as stocks, bonds, futures, forwards, and options. Finally, it outlines functions of financial markets like price determination, risk sharing, and capital formation.
The document discusses different aspects of financial markets including the functions of financial markets, flow of funds through direct and indirect transfers, classification of financial assets into equity, debt, and hybrid instruments. It also defines different classifications of financial markets based on maturity, claim, and structure. Finally, it outlines various types of financial intermediaries such as depositary institutions, contractual savings institutions, and investment intermediaries.
Financial Markets, Financial Institutions, Interest Rates. asset demand and determination of asset prices, role of information in financial markets, causes and consequences of financial crises.
SU Ch2 M.Sc AcFn551 FMI 2022 sem2 Depository Financial Institution.pptxProfDrAnbalaganChinn
This document provides information about depository financial institutions. It defines depository institutions as organizations that accept currency deposits for safekeeping, such as banks and savings associations. The document outlines different types of depository institutions including commercial banks, microfinance institutions, savings banks, and credit unions. It also discusses the importance of financial institutions in mobilizing savings and investments.
The document summarizes key elements of financial markets and systems, including:
1) Financial markets bring together suppliers and demanders of funds and facilitate the exchange of various financial instruments. They include money markets for short-term funds and capital markets for long-term funds.
2) Money markets trade instruments like treasury bills, commercial paper, repurchase agreements and certificates of deposit. Capital markets trade stocks and long-term bonds.
3) Financial intermediaries like banks act as a link between savers and borrowers, converting direct claims into indirect securities. Financial markets allow for direct transactions.
This chapter discusses why studying money, banking, and financial markets is important: to understand how financial markets work; how banks and other financial institutions operate; and the role of monetary policy. It provides an overview of key concepts like financial markets, the bond market, stock market, financial institutions, and past financial crises.
This document provides an overview of financial markets and institutions. It discusses the role and functions of financial markets in facilitating the transfer of funds from surplus units to deficit units. It also describes different types of financial markets, securities traded in these markets such as money market securities, bonds, stocks and derivatives. Finally, it examines the roles of various financial institutions like commercial banks, savings institutions, mutual funds, securities firms, insurance companies and pension funds in financial markets. It also discusses competition and consolidation trends in the financial industry.
Ppt money and banking (depository and depository institution , insurance co.)ibrahim ashraf
This document defines and describes different types of financial institutions. It identifies depository institutions like commercial banks, credit unions, and savings and loans that accept deposits, and non-depository institutions like insurance companies, pension funds, and mutual funds that do not accept deposits. It provides details on the purpose and services provided by these various financial institutions.
This document provides an overview of chapter one of a course on financial markets and institutions. It defines a financial system and describes key components including financial markets, instruments, and participants. It discusses various types of financial markets like money markets, bond markets, stock markets, and derivatives markets. It also defines different financial instruments such as stocks, bonds, futures, forwards, and options. Finally, it outlines functions of financial markets like price determination, risk sharing, and capital formation.
The document discusses different aspects of financial markets including the functions of financial markets, flow of funds through direct and indirect transfers, classification of financial assets into equity, debt, and hybrid instruments. It also defines different classifications of financial markets based on maturity, claim, and structure. Finally, it outlines various types of financial intermediaries such as depositary institutions, contractual savings institutions, and investment intermediaries.
Financial Markets, Financial Institutions, Interest Rates. asset demand and determination of asset prices, role of information in financial markets, causes and consequences of financial crises.
SU Ch2 M.Sc AcFn551 FMI 2022 sem2 Depository Financial Institution.pptxProfDrAnbalaganChinn
This document provides information about depository financial institutions. It defines depository institutions as organizations that accept currency deposits for safekeeping, such as banks and savings associations. The document outlines different types of depository institutions including commercial banks, microfinance institutions, savings banks, and credit unions. It also discusses the importance of financial institutions in mobilizing savings and investments.
The document summarizes key elements of financial markets and systems, including:
1) Financial markets bring together suppliers and demanders of funds and facilitate the exchange of various financial instruments. They include money markets for short-term funds and capital markets for long-term funds.
2) Money markets trade instruments like treasury bills, commercial paper, repurchase agreements and certificates of deposit. Capital markets trade stocks and long-term bonds.
3) Financial intermediaries like banks act as a link between savers and borrowers, converting direct claims into indirect securities. Financial markets allow for direct transactions.
This document discusses the financial environment, including financial markets and institutions. It describes financial markets as places where individuals and organizations looking to borrow funds are brought together with those having surplus funds. The markets are divided into money markets, which exchange short-term instruments under one year, and capital markets, which exchange long-term securities over one year. Primary markets are where new securities are issued, while secondary markets allow existing securities to be traded. The document also outlines various financial institutions that transfer funds between lenders and borrowers, such as commercial banks, credit unions, and mutual funds.
Information about Financial Market, Indian Financial System, Indian Financial Institutions, Types of Financial Markets, Role of capital market and Role of Financial Institutions.
Depository institutions include banks, savings and loans, and credit unions which offer multiple banking and financial services. They provide services like deposit accounts, loans, mortgages, and insurance on deposits. Credit unions typically offer interest rates that are most beneficial to consumers.
Introduction To Financial Institutions And Marketsitsvineeth209
This document provides an introduction to financial institutions and markets. It discusses the key components of the financial system including money, credit, services and finance. It also outlines the main functions of financial institutions such as collecting funds from investors and directing them to providers. The document categorizes common financial institutions and describes financial markets as places where financial assets are traded. It defines various financial instruments and how they are categorized as cash instruments or derivatives.
Foreign capital market and its instrumentsArjun Bhalla
The document discusses capital markets and their instruments. It defines capital markets as dealing with medium to long term funds through securities like stocks and bonds. Capital markets have two main functions: raising long term funds for organizations and mobilizing savings. They help speed economic growth and ensure continuous availability of funds. Capital market instruments include equity, debt, insurance, and hybrid instruments. Equity instruments provide ownership, while debt instruments are borrowed funds that must be repaid with interest. Well-regulated capital markets are important for trade and economic development.
This document provides an overview of financial markets and institutions. It discusses how the household and business sectors interact and how financial intermediaries help allocate capital between savers and investors. Financial markets facilitate the transfer of savings, provide pricing information, and bring liquidity. Different types of financial markets include money markets, capital markets, primary markets, and secondary markets. The document also outlines various financial institutions like investment banks, commercial banks, and mutual funds that operate within these markets. It explains how taking out a loan from a bank creates new money in the economy beyond what is held in reserves. Finally, it briefly mentions physical and over-the-counter stock exchanges.
This document provides an overview of financial markets and institutions. It discusses the major types of financial institutions, including commercial banks, thrifts, insurance companies, securities firms, finance companies, mutual funds, pension funds, credit unions, and contractual institutions. For each type of institution, it briefly describes how they operate and how they differ. It also discusses the regulation of financial institutions and why governments regulate them, such as to protect consumers and prevent failures in the financial system.
Fabozzi, F. J., Modigliani, F., Jones, F. J., & Ferri, M. Foundations of financial markets and institutions. Delhi: Dorling Kindersley (India) Pvt. Ltd.
Overview of financial assets: concept of financial assets, debt versus equity instruments, the price of financial assets and risk, financial assets versus tangible assets, the role of financial assets; Financial markets: concepts and role of financial markets, classification of financial markets, market participants, globalization of financial markets, classification of global financial markets, motivation for foreign market and Euromarkets; The role of the government in financial markets: justification for regulation, forms of regulation; and Financial innovation: categorization of financial innovations, and motivation for financial innovation.
This document provides an overview of financial markets and institutions. It defines financial markets as markets for trading financial assets like stocks and bonds. It describes the main roles of financial markets as facilitating financial intermediation, providing a payments system, and allowing risk management. The document also outlines different types of financial markets and securities traded on markets. It discusses the role of financial institutions in processing information, lowering transaction costs, and addressing market imperfections to serve borrowers and lenders. Finally, it notes trends in financial institutions like consolidation, increased competition, and global expansion.
The document discusses various types of financial instruments. It defines a financial instrument as any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity according to IAS standards. The document then proceeds to classify and describe different types of financial instruments including monetary instruments, investment instruments such as debt securities, equity securities, mutual funds, and derivatives, as well as non-investment instruments such as foreign exchange and cryptocurrency. Key details on each instrument such as features, examples, and liquidity are provided.
Introduction to financial system and financial servicesdrpvkhatrissn
The document provides an introduction to financial systems and financial services. It defines key terms like financial assets, financial intermediaries, and financial markets. It describes the major components of India's financial system including banks, capital markets, money markets, and development institutions. It also outlines some weaknesses of India's historical financial system as well as modern financial services and products that have emerged.
This document discusses the key concepts of money and banking. It defines money as anything generally accepted as a medium of exchange, like currency notes and coins. Money serves four main roles: as a medium of exchange, unit of account, store of value, and standard for deferred payment. Historically, money has taken the form of commodity money, backed by valuables like gold, and fiat money, which is not backed but widely accepted. Modern forms of money include currency, checkable deposits in banks, and various types of paper money not backed by commodities. For a currency to function well as money, it should have properties of portability, divisibility, durability and recognizable value.
The document discusses various investment options available to Indian investors including banks, post office schemes, company fixed deposits, and the stock market. It then provides an overview of mutual funds, highlighting their benefits such as professional management, diversification, potential for returns, liquidity, transparency, affordability, and regulation. Mutual funds offer various types of schemes categorized by structure (open-end, closed-end, interval funds) and investment objective (growth, income, balanced, money market, tax saving, industry/sector specific, index funds). The document positions mutual funds as offering several advantages over other investment options for individual investors.
This chapter provides an overview of the topics that will be covered in the course, including money, banking, financial institutions, financial instruments, financial markets, and central banks. It describes the five core components of the financial system as money, financial institutions, financial instruments, financial markets, and central banks. It provides brief definitions and discussions of these components, as well as concepts like monetary policy, fiscal policy, and the roles of central banks.
The document defines and describes key components of a financial system. It explains that a financial system consists of financial institutions and markets that facilitate the transfer of funds between entities with excess capital and those with deficits. It outlines the main participants in financial systems as households, companies, governments, and foreigners. It also describes various financial intermediaries like banks, investment funds, pension funds, and insurance companies. Finally, it provides examples of different types of financial markets and securities.
Financial institutions and markets notes as per BPUT syllabus for MBA 2nd sem...Venkat Kothakota
The document provides information on the Indian financial market and its various components. It discusses the money market and capital market as the two main organized financial markets in India. The money market is further divided into unorganized and organized segments. The unorganized segment includes money lenders, indigenous bankers, and chit funds. The organized money market comprises treasury bills, commercial paper, certificates of deposit, the call money market, and the commercial bill market. The capital market provides long-term finance and consists of the industrial securities market, government securities market, and long-term loans market.
The document discusses the structure of the financial system. It describes how the financial system functions as an intermediary between savers and investors, channeling funds from areas of surplus to deficit. The financial system consists of individuals, institutions, markets, and instruments. It categorizes financial institutions as banking and non-banking, and classifies financial markets based on the type, maturity, and structure of financial claims traded. Financial instruments are used to raise capital and money market funds. Financial services facilitate financial transactions and the transformation of savings into investments.
A mutual fund is a pool of money managed by professionals to invest in securities like stocks and bonds. Investors purchase units of the fund. Benefits include professional management, diversification, liquidity, and flexibility. Fees can be front-end loads or back-end loads. Funds invest in major asset classes like money market, bonds, balanced, dividend, equity, and specialty funds. Performance is measured using models like Treynor, Sharpe, Jensen, and Fama that consider risk-adjusted returns. Mutual funds have grown significantly in India in recent years as more savings are channeled into the sector.
This document provides an overview of the Indian financial system. It discusses the key components of a financial system including financial assets, institutions, and markets. It describes the major financial institutions in India such as banks, mutual funds, and insurance companies. It also outlines various money market instruments like treasury bills, commercial paper, certificates of deposit. The functions and types of financial markets like money market, capital market, and derivatives market are summarized as well. Overall, the document presents a high-level introduction to the structure and components of India's financial system.
This document discusses financial markets and institutions. It begins by outlining the capital allocation process and defining direct and indirect financing. It then discusses various segments of financial markets, including money markets and capital markets. The document outlines what financial markets are, why they are important to study, and their key functions. It also defines different types of financial markets and instruments traded within them, such as money market securities, capital market securities, bonds, mortgages, and derivatives. Finally, it discusses financial institutions, defining them and their role in facilitating indirect finance between savers and borrowers.
This document discusses the financial environment, including financial markets and institutions. It describes financial markets as places where individuals and organizations looking to borrow funds are brought together with those having surplus funds. The markets are divided into money markets, which exchange short-term instruments under one year, and capital markets, which exchange long-term securities over one year. Primary markets are where new securities are issued, while secondary markets allow existing securities to be traded. The document also outlines various financial institutions that transfer funds between lenders and borrowers, such as commercial banks, credit unions, and mutual funds.
Information about Financial Market, Indian Financial System, Indian Financial Institutions, Types of Financial Markets, Role of capital market and Role of Financial Institutions.
Depository institutions include banks, savings and loans, and credit unions which offer multiple banking and financial services. They provide services like deposit accounts, loans, mortgages, and insurance on deposits. Credit unions typically offer interest rates that are most beneficial to consumers.
Introduction To Financial Institutions And Marketsitsvineeth209
This document provides an introduction to financial institutions and markets. It discusses the key components of the financial system including money, credit, services and finance. It also outlines the main functions of financial institutions such as collecting funds from investors and directing them to providers. The document categorizes common financial institutions and describes financial markets as places where financial assets are traded. It defines various financial instruments and how they are categorized as cash instruments or derivatives.
Foreign capital market and its instrumentsArjun Bhalla
The document discusses capital markets and their instruments. It defines capital markets as dealing with medium to long term funds through securities like stocks and bonds. Capital markets have two main functions: raising long term funds for organizations and mobilizing savings. They help speed economic growth and ensure continuous availability of funds. Capital market instruments include equity, debt, insurance, and hybrid instruments. Equity instruments provide ownership, while debt instruments are borrowed funds that must be repaid with interest. Well-regulated capital markets are important for trade and economic development.
This document provides an overview of financial markets and institutions. It discusses how the household and business sectors interact and how financial intermediaries help allocate capital between savers and investors. Financial markets facilitate the transfer of savings, provide pricing information, and bring liquidity. Different types of financial markets include money markets, capital markets, primary markets, and secondary markets. The document also outlines various financial institutions like investment banks, commercial banks, and mutual funds that operate within these markets. It explains how taking out a loan from a bank creates new money in the economy beyond what is held in reserves. Finally, it briefly mentions physical and over-the-counter stock exchanges.
This document provides an overview of financial markets and institutions. It discusses the major types of financial institutions, including commercial banks, thrifts, insurance companies, securities firms, finance companies, mutual funds, pension funds, credit unions, and contractual institutions. For each type of institution, it briefly describes how they operate and how they differ. It also discusses the regulation of financial institutions and why governments regulate them, such as to protect consumers and prevent failures in the financial system.
Fabozzi, F. J., Modigliani, F., Jones, F. J., & Ferri, M. Foundations of financial markets and institutions. Delhi: Dorling Kindersley (India) Pvt. Ltd.
Overview of financial assets: concept of financial assets, debt versus equity instruments, the price of financial assets and risk, financial assets versus tangible assets, the role of financial assets; Financial markets: concepts and role of financial markets, classification of financial markets, market participants, globalization of financial markets, classification of global financial markets, motivation for foreign market and Euromarkets; The role of the government in financial markets: justification for regulation, forms of regulation; and Financial innovation: categorization of financial innovations, and motivation for financial innovation.
This document provides an overview of financial markets and institutions. It defines financial markets as markets for trading financial assets like stocks and bonds. It describes the main roles of financial markets as facilitating financial intermediation, providing a payments system, and allowing risk management. The document also outlines different types of financial markets and securities traded on markets. It discusses the role of financial institutions in processing information, lowering transaction costs, and addressing market imperfections to serve borrowers and lenders. Finally, it notes trends in financial institutions like consolidation, increased competition, and global expansion.
The document discusses various types of financial instruments. It defines a financial instrument as any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity according to IAS standards. The document then proceeds to classify and describe different types of financial instruments including monetary instruments, investment instruments such as debt securities, equity securities, mutual funds, and derivatives, as well as non-investment instruments such as foreign exchange and cryptocurrency. Key details on each instrument such as features, examples, and liquidity are provided.
Introduction to financial system and financial servicesdrpvkhatrissn
The document provides an introduction to financial systems and financial services. It defines key terms like financial assets, financial intermediaries, and financial markets. It describes the major components of India's financial system including banks, capital markets, money markets, and development institutions. It also outlines some weaknesses of India's historical financial system as well as modern financial services and products that have emerged.
This document discusses the key concepts of money and banking. It defines money as anything generally accepted as a medium of exchange, like currency notes and coins. Money serves four main roles: as a medium of exchange, unit of account, store of value, and standard for deferred payment. Historically, money has taken the form of commodity money, backed by valuables like gold, and fiat money, which is not backed but widely accepted. Modern forms of money include currency, checkable deposits in banks, and various types of paper money not backed by commodities. For a currency to function well as money, it should have properties of portability, divisibility, durability and recognizable value.
The document discusses various investment options available to Indian investors including banks, post office schemes, company fixed deposits, and the stock market. It then provides an overview of mutual funds, highlighting their benefits such as professional management, diversification, potential for returns, liquidity, transparency, affordability, and regulation. Mutual funds offer various types of schemes categorized by structure (open-end, closed-end, interval funds) and investment objective (growth, income, balanced, money market, tax saving, industry/sector specific, index funds). The document positions mutual funds as offering several advantages over other investment options for individual investors.
This chapter provides an overview of the topics that will be covered in the course, including money, banking, financial institutions, financial instruments, financial markets, and central banks. It describes the five core components of the financial system as money, financial institutions, financial instruments, financial markets, and central banks. It provides brief definitions and discussions of these components, as well as concepts like monetary policy, fiscal policy, and the roles of central banks.
The document defines and describes key components of a financial system. It explains that a financial system consists of financial institutions and markets that facilitate the transfer of funds between entities with excess capital and those with deficits. It outlines the main participants in financial systems as households, companies, governments, and foreigners. It also describes various financial intermediaries like banks, investment funds, pension funds, and insurance companies. Finally, it provides examples of different types of financial markets and securities.
Financial institutions and markets notes as per BPUT syllabus for MBA 2nd sem...Venkat Kothakota
The document provides information on the Indian financial market and its various components. It discusses the money market and capital market as the two main organized financial markets in India. The money market is further divided into unorganized and organized segments. The unorganized segment includes money lenders, indigenous bankers, and chit funds. The organized money market comprises treasury bills, commercial paper, certificates of deposit, the call money market, and the commercial bill market. The capital market provides long-term finance and consists of the industrial securities market, government securities market, and long-term loans market.
The document discusses the structure of the financial system. It describes how the financial system functions as an intermediary between savers and investors, channeling funds from areas of surplus to deficit. The financial system consists of individuals, institutions, markets, and instruments. It categorizes financial institutions as banking and non-banking, and classifies financial markets based on the type, maturity, and structure of financial claims traded. Financial instruments are used to raise capital and money market funds. Financial services facilitate financial transactions and the transformation of savings into investments.
A mutual fund is a pool of money managed by professionals to invest in securities like stocks and bonds. Investors purchase units of the fund. Benefits include professional management, diversification, liquidity, and flexibility. Fees can be front-end loads or back-end loads. Funds invest in major asset classes like money market, bonds, balanced, dividend, equity, and specialty funds. Performance is measured using models like Treynor, Sharpe, Jensen, and Fama that consider risk-adjusted returns. Mutual funds have grown significantly in India in recent years as more savings are channeled into the sector.
This document provides an overview of the Indian financial system. It discusses the key components of a financial system including financial assets, institutions, and markets. It describes the major financial institutions in India such as banks, mutual funds, and insurance companies. It also outlines various money market instruments like treasury bills, commercial paper, certificates of deposit. The functions and types of financial markets like money market, capital market, and derivatives market are summarized as well. Overall, the document presents a high-level introduction to the structure and components of India's financial system.
This document discusses financial markets and institutions. It begins by outlining the capital allocation process and defining direct and indirect financing. It then discusses various segments of financial markets, including money markets and capital markets. The document outlines what financial markets are, why they are important to study, and their key functions. It also defines different types of financial markets and instruments traded within them, such as money market securities, capital market securities, bonds, mortgages, and derivatives. Finally, it discusses financial institutions, defining them and their role in facilitating indirect finance between savers and borrowers.
Bussiness finanace: week 2 ppt IBA BATCH 2024QUARANTINETV
This document provides an overview of financial markets and institutions. It discusses how capital is transferred from savers to borrowers through direct transfers, investment banks, or financial intermediaries. It also describes key terms like investment bankers and financial intermediaries. The document outlines different types of financial markets (money markets, capital markets, public vs. private markets) and institutions (commercial banks, mutual funds, hedge funds). It concludes with a brief discussion of stock market efficiency.
The document provides an overview of financial instruments and financial markets. It defines a financial instrument as a real or virtual document representing a legal agreement involving monetary value. Financial instruments can be divided into cash instruments, whose values are directly influenced by markets, and derivative instruments, whose values are based on underlying assets. They can also be divided into debt-based instruments, representing loans, and equity-based instruments, representing ownership. The document then discusses the structure of financial markets in India, including various types of organized markets like the stock market, bond market, and money market, as well as unorganized informal markets. It describes the roles of various participants in these markets like stock exchanges, brokers, banks, and investment managers.
The financial system in India has seen significant changes since independence, facilitating faster economic development. The system links savers and investors through various financial institutions and markets. It provides necessary financial inputs for production through intermediation of funds. The major components of the financial system are banking institutions, non-banking financial institutions, financial markets, and financial instruments. Financial markets include money markets for short-term funds and capital markets for long-term funds. Money markets deal in short-term debt instruments like treasury bills, commercial paper, certificates of deposit, and promissory notes. Capital markets facilitate resource mobilization through primary and secondary markets.
The document provides an overview of the Indian financial system, including its key components, structure, and roles. It discusses the various financial institutions that make up the system, such as banking institutions (commercial banks, cooperative banks, regional banks, foreign banks), non-banking financial institutions, regulatory authorities like SEBI and IRDA, and financial markets (organized vs unorganized, money market, capital market, government securities market, foreign exchange market). It also covers financial instruments, fund-based and non-fund based financial services, and the functions and importance of the financial system in India's economic development.
This document provides an overview of the key components of the Indian financial system. It discusses financial intermediaries like banks, mutual funds, insurance companies, and pension funds. It also describes different types of financial markets including money markets, bond markets, stock markets, and derivatives markets. It outlines various financial instruments such as bonds, stocks, and derivatives. Finally, it discusses the different regulators that oversee the various segments of the Indian financial system, including the RBI, SEBI, and IRDA.
The document provides an overview of the Indian financial system, including its key components and functions. It describes the structure of the Indian financial system, the main types of financial institutions (banking and non-banking), financial markets (organized and unorganized), instruments, and services. The financial system bridges the gap between savings and investment, facilitates trading, aids economic development, and encourages both savings and investment in India.
This document defines key terms related to finance and financial systems, including markets, institutions, instruments, and services. It describes how financial systems connect savers and investors, facilitating the flow of funds from areas of surplus to deficit. The formal financial system has four main components: financial institutions, markets, instruments, and services. It also outlines the major types of financial institutions, markets, instruments, and services.
The document discusses securities markets and the types of securities traded within those markets. It defines what a security is and outlines the main types: equity securities (stocks), debt securities (bonds), and derivatives. It then discusses primary and secondary markets, how new securities are issued in the primary market and previously issued securities are traded in the secondary market. The roles of security markets are also summarized as providing liquidity, facilitating capital formation and business ownership, and price discovery. Reforms to India's security markets are highlighted such as the establishment of regulatory bodies and growth of electronic trading.
The document discusses various topics related to financial markets in India including what a financial market is, the key components of India's financial market structure such as money markets, capital markets, stock exchanges, and the trading of different financial instruments like stocks, debentures, and preference shares. It provides details on the primary and secondary markets, types of equity and preference shares, features and types of debentures, and the key functions of stock exchanges.
Capital markets are financial markets for long-term debt or equity-backed securities where money is provided for over a year. They channel wealth from savers to long-term investors like companies and governments. Capital markets have a primary market where new securities are sold and a secondary market where existing securities are traded. They mobilize savings, enable capital formation and economic growth, provide investment opportunities, and are regulated to protect investors. Money markets are for assets involved in borrowing and lending of up to one year. They include instruments like certificates of deposit, commercial paper, and repurchase agreements. Both capital and money markets are important for financing trade and industry while managing liquidity and risk.
Securities firms act as brokers, executing transactions between parties for a fee. They also act as dealers, adjusting inventories of securities to make markets. Pension funds periodically contribute funds from employees and employers. Securities with over one year maturity are traded in capital markets like bonds, mortgages, and stocks. Financial markets facilitate the flow of funds from surplus units like households to deficit units like firms.
The document provides an overview of financial markets, including:
1) It defines financial markets and discusses their key features like liquidity, efficiency, and risk management.
2) It explains the importance of financial markets in facilitating capital formation, economic growth, and price discovery.
3) It describes the classification of financial markets based on maturity, seasoning, timing and delivery, and organizational structure. This includes distinctions between money markets and capital markets.
This document defines key terms in finance and describes various financial institutions and markets. It begins by defining finance, money, and credit. It then discusses two main classifications of finance - public and private. Next, it examines different types of financial institutions like banks, investment companies, insurance companies, and credit unions. It also explores various financial markets and instruments. In closing, the document emphasizes the relationship between financial institutions and markets.
Session 02 - Role of Financial Markets and Institutions.pptxExperimentalLab
1. Financial markets facilitate the flow of funds between surplus units and deficit units by transferring funds from those with excess funds to those who need funds. They allow corporations and governments to raise funds by issuing securities.
2. Financial institutions play a key role in financial markets by channeling funds from surplus units like households and corporations to deficit units in need of financing. Depository institutions like banks accept deposits and provide loans while non-depository institutions raise funds through other means like issuing securities.
3. Both depository and non-depository financial institutions help address imperfections in financial markets by evaluating borrowers, repackaging funds, and providing liquidity. They allow for efficient allocation of funds between surplus and deficit units
The document provides an introduction to the Indian financial system, which includes both formal/organized and informal/unorganized components. It describes the various subsystems that make up the formal financial system, including financial institutions, markets, instruments, and services. It also discusses the roles and interactions of different elements like banks, non-banking institutions, money markets, capital markets, primary markets, and secondary markets.
The document defines finance and financial systems. It discusses the functions of money, different measures of money supply, and the roles of money lending, capital formation, and investment in the financial system. It also describes the evolution of financial systems from more rudimentary to indirect systems, the key components and markets within financial systems, and the functions of financial intermediaries, markets, and instruments.
The document discusses the structure and key components of India's financial system. It outlines the main financial institutions, instruments, and markets. It also describes the key functions of a financial system in facilitating resource transfer, transactions, and risk management across sectors. Several regulatory bodies that oversee different aspects of the financial system are mentioned, including RBI, SEBI, and IRDAI. Their main roles are described as protective, developmental, and regulatory. Key financial markets like money market, capital market, and forex market are defined. Depositories like NSDL and CDSL and their role in facilitating electronic holding and transactions of securities are summarized. The primary and secondary markets are distinguished, with stock exchanges providing a platform for trading but
Financial system and markets:
objectives of financial system-
Concepts of financial system-
Financial concepts-
Development of financial systems in India-
Weakness of Indian financial system
Thought the H-O theory did not supplant the comparative cost theory, but supported it by providing explanation for the relative commodity price differences between the countries and their respective comparative advantages. The Heckscher-Ohlin theory focuses on the differences in the relative abundance of factors of production in various nations as the most important determinant of the difference in relative commodity prices and comparative advantage. However Leontief in his empirical examination found opposite of what the H-O model predicted, given the high level of U.S. wages and the relatively high amount of capital per worker in the United States. Leontief’s discovery was termed the Leontief Paradox.
However this did not disprove H-O theory, instead we have various explanations on such paradoxical situation. The Post H-O theory mainly looked in this aspect.
Pure monopoly is the form of market organisation in which there is a sinle seller of a commodity for which there are no close substitutes and there are barriers to entry
In a perfectly competitive market, firms are price-takers. It is largely regarded as an ideal situation and such a market situation is hard to find. In the real world, you are dealing with firms large enough to affect the market price. In many such markets there are handful of firms who dominate in one way or other. Such markets are market of imperfect competition.
A market is perfectly competitive if
There are large number of sellers and buyers of the commodity – therefore no individuals can influence price
Homogeneous products across all firms in the industry.
Perfect mobility of resources.
All the economic agents (consumers, producers, factor owners) in the market have perfect knowledge of present and future prices and costs
Market is a place (need not be any physical entity) where the sales and purchases of goods and services are taken place. Market structure is the organisational characteristics of a market. Here the organisational characteristics are mainly relied on nature of competition and pricing.
The rise of new economic powers has generally been driven by the rapid structural transformation of their economies, featured by the shift from primary production, such as mining and agriculture to manufacturing; and in manufacturing from natural-resource-based to more sophisticated, skill- and technology-intensive activities.
The document discusses economic structural changes that occur during development. It defines structural changes as long-term shifts in the composition of economic sectors, such as the rise of manufacturing and services and decline of agriculture and industry over time. Countries experience rapid structural transformation as they industrialize, exemplified by many developing nations in Asia and Latin America that grew their manufacturing sectors. However, structural changes differ across countries depending on factors like endowments and history. More recently, the service sector has become dominant globally as the role of agriculture and manufacturing declines.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
2. The Financial System
An institutional framework existing in a country to
enable financial transactions
A system that establishes efficient and smooth
linkage between depositors and investors
3. The Financial System
The Financial System composed of
1. Financial Markets
◦ Money Market, Capital Market, Forex Markets etc.
2. Financial Institutions
◦ Banking and non banking financial institutions.
3. Financial Securities
◦ Loans, deposits, equity shares, bonds, debentures etc.
4. Regulatory agencies
◦ RBI, SEBI, IRDA etc.
4. Financial Markets
Financial markets facilitate the trade in financial products
The primary role of financial markets is to intermediate resources
from savers to investors.
Allocates the resources in an efficient manner among competing
uses in the economy
….contributing to growth both through increased investment and
through enhanced efficiency in resource use.
5. Financial Markets
Money markets, which provide short term debt financing and investment.
Capital markets deals with long term funds.
Foreign exchange markets, which facilitate the trading of foreign exchange.
There will be various submarkets in each of these components
Commodity markets, which facilitate the trading of commodities.
Derivatives markets, which provide instruments for the management of financial risk.
Insurance markets, which facilitate the redistribution of various risks.
6. Money Market
Money market is market for short term funds
Money Market
Organised Unorganised
Call Money Market Bill Market Bank loans
Treasury Bills
Commercial
Bills
Hunidies
Loans from
IBs etc.
Organised
Call Money
Market
Bank loans
CPs CDs
RBI
7. Capital Market
Market for long term funds
Capital Market
Institutions
• IFCI
• SFCs
• IDFCs
• Investment Banks
• Mutual Funds
• Marchant banks
• Stock Exchanges
• Underwriters
Market
Primary • Equity Share
• Preference Shares
• Bonds
• Debentures
• Mutual Funds
• Depository Receipts
Secondary
Instruments SEBI
8. Foreign Exchange Market
Market for currencies of different countries
The organisational set up within which individuals, financial institutions, firms,
orgnaisations, governments buy and sell foreign currencies.
▪It is the largest market in the world
▪No specific meeting places
▪Twenty four hour market
▪Cash and other short term credit instruments used as instruments of forex
transitions.
9. Financial Institutions
Banking and Non-banking financial institutions
Banking institutions such as commercial banks collect money from
depositors directly and lend to investors or borrowers.
Non-banking institutions such as LIC, UTI are engaged in obtaining funds
from depositors indirectly.
There are special purpose institutions like NABARD, EXIM Bank which
are engaged in providing financial assistance for specific purposes and
sectors to bring about a desired pattern of development
11. Financial Assets/securities/instruments
Primary Securities, Secondary Securities, Derivative Instruments
Primary/Direct Securities
◦ A primary security is a security issued by non-financial economic
units.
Equity/Ordinary shares: They are ownership securities and represent risk capital.
Debentures: Debentures are medium- to long-term debt instruments used by large
companies to borrow money.
Preference shares: A preference share is a hybrid security and shares the features of both
equity and debentures. It combines both ownership and creditorship privileges.
12. Financial Assets/securities/instruments
Secondary/Indirect Securities
In the case of Secondary securities, borrowers borrow funds from
the financial market through indirect means, such as through a
financial intermediary.
Mutual funds
Policies of insurance companies
Deposits of banks
A major advantage of indirect securities is that the pooling of funds by a financial intermediary
leads to a number of indirect and derived benefits such as convenience, lower risk and expert
management.
13. Financial Assets/Securities/Instruments
Derivatives/Derivative Instruments
A security whose price is dependent upon or derived from one or
more underlying assets.
◦ Its a contract between two or more parties.
◦ Its value is determined by fluctuations in the underlying asset.
◦ The most common underlying assets include stocks, bonds, commodities, currencies and market
indexes.
◦ Most derivatives are characterised by high leverage.
◦ These instruments are generally used as an instrument to hedge risk.
◦ Commonly used derivative contracts are forwards, futures and options.