Direct finance involves borrowers borrowing funds directly from lenders through financial markets by selling securities. Financial markets transfer funds from lenders to borrowers through primary and secondary markets. Primary markets involve the initial sale of new securities, while secondary markets allow existing securities to be traded. Financial markets provide risk sharing, liquidity, and information services. They are classified by maturity, type of claim, and trading place.
JELC-Lite: Unconventional Instructional Design for Special Operations TrainingJay Gendron
Abstract. Current special operations staff training is based on the Joint Event Life Cycle (JELC). It addresses operational level tasks in multi-week, live military exercises which are planned over a 12 to 18 month timeframe. As the military experiences changing global mission sets, shorter training events using distributed technologies will increasingly be needed to augment traditional training. JELC-Lite is a new approach for providing relevant training between large scale exercises. This new streamlined, responsive training model uses distributed and virtualized training technologies to establish simulated scenarios. It keeps proficiency levels closer to optimal levels – thereby reducing the performance degradation inherent in periodic training. It can be delivered to military as well as under-reached interagency groups to facilitate agile, repetitive training events. JELC-Lite is described by four phases paralleling the JELC, differing mostly in scope and scale. It has been successfully used with a Theater Special Operations Command and fits well within the current environment of reduced personnel and financial resources.
Soils and rocks have unique and distinct engineering properties.
Engineering properties of soils and rocks are very essential parameters to be analysed for several technical reasons.
Properties of these materials may not only pose problems but also give solutions to solve the problems.
JELC-Lite: Unconventional Instructional Design for Special Operations TrainingJay Gendron
Abstract. Current special operations staff training is based on the Joint Event Life Cycle (JELC). It addresses operational level tasks in multi-week, live military exercises which are planned over a 12 to 18 month timeframe. As the military experiences changing global mission sets, shorter training events using distributed technologies will increasingly be needed to augment traditional training. JELC-Lite is a new approach for providing relevant training between large scale exercises. This new streamlined, responsive training model uses distributed and virtualized training technologies to establish simulated scenarios. It keeps proficiency levels closer to optimal levels – thereby reducing the performance degradation inherent in periodic training. It can be delivered to military as well as under-reached interagency groups to facilitate agile, repetitive training events. JELC-Lite is described by four phases paralleling the JELC, differing mostly in scope and scale. It has been successfully used with a Theater Special Operations Command and fits well within the current environment of reduced personnel and financial resources.
Soils and rocks have unique and distinct engineering properties.
Engineering properties of soils and rocks are very essential parameters to be analysed for several technical reasons.
Properties of these materials may not only pose problems but also give solutions to solve the problems.
Presentation Typical Construction Methods & Sequence.
For the Stakeholders, Public & Politicians to get an understanding of how the works are carried out and the timeline.
1. SELECTION OF FOUNDATION AND SUBSOIL EXPLORATION/INVESTIGATION (FE) 2180609...VATSAL PATEL
Types of foundation, Factors affecting the selection of type of foundations, steps in choosing types of foundation based on soil condition, Objectives and planning of exploration program, methods of exploration-wash boring and rotary drilling-depth of boring, soil samples and soil samplers-representative and undisturbed sampling, field penetration tests: SPT, SCPT, DCPT. Introduction to geophysical methods,
Soil Mechanics- All Theorical Leactuers.pdfBahzad5
Soil Mechanics
3rd stage
5th and 6th Semester
prepared by Dr. Zina Dawood
Civil Engineering Department
Erbil Polytechnic University
Chapter One
“Introduction”
Chapter Two
Clay Minerals
Chapter Three
Weight-Volume Relations
Chapter Four Particle Size Analysis
Chapter Five
Stresses with in Soil Mass
Chapter Six
Total and Effective Stresses
Chapter Seven Soil Permeability and Flow
Class notes of Geotechnical Engineering course I used to teach at UET Lahore. Feel free to download the slide show.
Anyone looking to modify these files and use them for their own teaching purposes can contact me directly to get hold of editable version.
Presentation Typical Construction Methods & Sequence.
For the Stakeholders, Public & Politicians to get an understanding of how the works are carried out and the timeline.
1. SELECTION OF FOUNDATION AND SUBSOIL EXPLORATION/INVESTIGATION (FE) 2180609...VATSAL PATEL
Types of foundation, Factors affecting the selection of type of foundations, steps in choosing types of foundation based on soil condition, Objectives and planning of exploration program, methods of exploration-wash boring and rotary drilling-depth of boring, soil samples and soil samplers-representative and undisturbed sampling, field penetration tests: SPT, SCPT, DCPT. Introduction to geophysical methods,
Soil Mechanics- All Theorical Leactuers.pdfBahzad5
Soil Mechanics
3rd stage
5th and 6th Semester
prepared by Dr. Zina Dawood
Civil Engineering Department
Erbil Polytechnic University
Chapter One
“Introduction”
Chapter Two
Clay Minerals
Chapter Three
Weight-Volume Relations
Chapter Four Particle Size Analysis
Chapter Five
Stresses with in Soil Mass
Chapter Six
Total and Effective Stresses
Chapter Seven Soil Permeability and Flow
Class notes of Geotechnical Engineering course I used to teach at UET Lahore. Feel free to download the slide show.
Anyone looking to modify these files and use them for their own teaching purposes can contact me directly to get hold of editable version.
Financial Market is the market where financial securities like stocks and bonds and commodities like valuable metals are exchanged at efficient market prices. Here, by efficient market prices we mean the unbiased price that reflects belief at collective speculation of all investors about the future prospect. The trading of stocks and bonds in the Financial Market can take place directly between buyers and sellers or by the medium of Stock Exchange. Financial Markets can be domestic or international.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
2. Objectives of Learning Unit
• Direct Finance
– How Funds are Transferred?
– How Three Financial Services are Provided?
• Direct Finance in Action
– Financial Instruments in Financial Markets
– Financial Institutions in Financial Markets
– Types of Financial Markets
3. Direct Finance
• Direct Finance: Borrowers borrow funds
directly from lenders in financial markets by
selling them securities.
• Securities (Financial instruments): claims on
the borrower’s future income or assets
4. How Financial Markets Transfer Funds
from Lenders to Borrowers
• Financial markets transfer funds from lender-
savers to borrower-spenders in primary
markets.
• Primary Markets: New issues of a security are
sold to initial buyers by the corporation or
government agency borrowing funds.
– Corporations raise funds for investment.
– Governments use funds to finance budget deficits.
5. Issue New Securities
When a firm issues new securities, the firm
• Gets help from investment banks.
• Files a disclosure report to the Security and
Exchange Commission (SEC).
• Prepares a prospectus (information for prospective
buyers of the securities).
• Makes an announcement (tombstone) on the Wall
Street Journal.
In the case of a new stock issue, this sale is called
“initial public offering” (IPO).
6. Tombstone
Tombstone: an announcement of new security
issue on the Wall Street Journal.
• Tombstones are very plain, and have limited
information about new issues such as name of
issuing firm or organization, type of securities to be
issued, number of securities to be issued, sales price
of securities, and financial institutions which help
issuing the securities (underwrites and syndicates).
7. Tombstone Example
TRI-S Security Corporation
will issue 1.8 million shares
of stocks at $6 each to raise
$10.8 million of funds (1.8
million x $6). Capital
Growth Financial and
Bathgate Capital Partners
are investment banks
helping TRI-S Security to
issue the stocks and selling
them to initial buyers.
8. How Financial Markets Provide Three
Financial Services
• Financial Markets provide three financial
services in secondary markets.
• Secondary Markets: Financial instruments that
have already been issued are re-sold by one
investor to another.
9. Risk Sharing
• Secondary markets provide a variety of securities in
small denomination.
– In primary markets new securities are often sold in a large
lot (quantity), requiring buyers large sum of money.
– In primary markets corporations and organizations issue new
securities once in many years, so buyers have to wait for a
long time to purchase a particular security.
• Secondary markets enable small savers to purchase a
collection of assets and achieve diversification.
• With diversification, small savers can reduce an
overall risk on his saving (portfolio).
10. Liquidity
• Secondary markets allow holders of securities
to sell any time and purchase another.
– Without secondary markets holders of securities
must wait until their maturities to get funds back.
• By allowing holders of securities to sell any
time, secondary markets provide liquidity
services.
11. Information
• Secondary markets determine prices of securities
every day.
– The most important information of financial instrument for
savers (buyers of securities) and borrowers (issuers of
securities) is its price.
– Corporations whose securities are publicly traded (in
secondary markets) are required to disclose financial
information to the government (SEC) and security holders.
• Primary markets also help providing information of
issuers and securities to buyers of securities.
12. Classifications of Financial Markets
Financial markets are classified in terms of
– Maturity
– Types of claim
– Trading place
13. Classification by Maturity
• Money Markets
Trade financial instruments with a maturity of one year or
less
Ex. Three-month negotiable certificate of deposits
• Capital Markets
Trade financial instruments with a maturity greater than one
year
Ex. 30-year-maturity corporate bond
14. Maturity
• Maturity: Length of time before a debt instrument
expires
– Short-term (one year or less), Intermediate-term (between one
year and ten years), and long-term debt (ten years or longer)
• Ex. Three-month negotiable certificate of deposit matures in three
months, so buyers of the CD will receive its principal and interest
payments in three months.
• Ex. Three-month Treasury bills (short-term), five-year Treasury
notes (intermediate-term), 30-year Treasury bonds (long-term).
• Question: How long is a maturity of stocks?
15. Classification by Type of Claim
• Debt Markets
Trade debt instruments (e.g. bonds).
• Equity Markets
Trade equity instruments (e.g. stocks).
16. Debt Instruments
• Debt instruments: a contractual agreement by the
borrower to pay the holder of the instrument fixed
dollar amounts at regular intervals until a specified
date.
– Fixed dollar payments are called interest and principal
payments.
– A specific date is maturity.
– Lenders (savers) receive interest as a payment for the rental
of funds.
17. Equity Instruments
• Equity instruments: claims to share in the net income
and the assets of a business.
– Ex. Common stocks
– Equity represents an ownership of corporation, so
stockholders are owners of the corporation, and all assets
and income of the corporation belong to the stockholders.
– There are many stockholders of a corporation, so they
share ownership of the corporation (they are also called
shareholder).
– Stockholders hire managers (CEO) through election of
Board of Directors (which supervises management team)
on behalf of them to do daily operation of the corporation.
– Stockholders receive periodic payments (dividends) out of
corporate income.
18. Classification by Trading Place
• Exchange (Auction Markets): Buyers and sellers of securities
or their agents meet in one central location (Exchange) to
conduct trades
– Ex. New York Stock Exchange (NYSE)
• Over-the-Counter (OTC) Markets: Security dealers at different
locations who have an inventory of securities stand ready to
buy and sell securities to anyone who comes to them and is
willing to accept their prices
– Securities are traded through computer networks with no
centralized trading place.
– Ex. NASDAQ (National Association of Security Dealers
Automated Quotation system).
19. Exchange and OTC
In New York Stock Exchange stocks are traded on floor between agents of
buyers and sellers with help of specialists (deal makers). In NASDAQ stocks
are traded between agents (security dealers) of buyers and sellers via online.
20. Stock Market Index
• Stock market index is a weighted average price of a basket of
stocks. It is used to gauge an overall performance of stock
markets.
• There are many stock market indices.
– Dow Jones Industrial Average (DJIA): a weighted average of prices of
stocks of largest and widely-held public companies in the U.S., selected
by Dow Jones.
• It includes Microsoft, Exxon-Mobile, Bank of America, Wal-Mart,
and other well-know corporations.
– Standard & Poor’s 500: a weighted average of prices of stocks of 500
large public companies representing each industry in the U.S.
– NASDAQ composite: a weighted average of prices of all stocks traded
in NASDAQ, where stocks of many medium-size and small-size
corporations are traded.
21. Example of Stock Market Indexes
on Wall Street Journal
• Wall Street Journal reports stock market indexes
prices everyday on Market Data page of Money &
Investing section (Section C).
– See “How to Interpret Market Data of Wall Street
Journal” on Blackboard
– On Market Data, Wall Street Journal shows charts of
three stock market indexes: DJIA, NASDAQ composite,
and S&P 500, and list various stock market indexes on the
previous trading day.
22. Financial Institutions in Direct Finance
• Primary markets
– Investment bank (investment banker)
• Secondary markets
– Security broker: Undertake purchases and sales of
securities for their customers in exchange for a commission
– Security dealer: Hold an inventory of securities and
undertake purchases and sales of securities for their
customers in exchange for a commission
– Ex. Edward Jones, e-Trade
23. Investment Bank
• Investment bank: Assist businesses and governments in raising
new funds by selling newly issued securities to initial buyers.
– Investment banks are not banks (as you know) at all!
– Ex. Lehman Brothers, Goldman Sacks, Salomon Smith
Barney (they are now parts of larger financial institutions).
• Underwriter: investment bank that guarantees the corporation
(which issues securities) a price on the securities and then sells
them to the public.
• Syndicate: a group of investment banks that share
underwriting.
– When a corporation issues a large amount of securities, one investment
bank cannot handle all sales, so it forms underwriting syndicate to
spread tasks and risk.
24. Brokerage Firm
• Brokerage firms: engage in all three securities
market activities: brokers, dealers, and
investment bankers.
– Ex. Meryl Lynch, Morgan Stanley Dean Witter
– Today, all large investment bankers are actually
brokerage firms, and many of them are parts of
even larger financial institutions.
ex. J.P. Morgan Chase
25. Financial Instruments in Direct Finance
• Money market instruments: Financial instruments
with maturity of one year or less
– Ex. U.S. Treasury bills, Negotiable bank certificates of
deposits, commercial paper, Banker’s acceptances,
Repurchase agreements, Federal funds
• Capital market instruments: Financial instruments
with maturity of more than one year
– Ex. Stocks, Mortgages, Corporate bonds, U.S. Government
securities, U.S. Government agency securities, State and
local government bonds, Consumer and bank commercial
loans
26. U.S. Treasury Bills
• U.S. Treasury Bills: short-term debt instruments of
the U.S. government
– One-, three-, and six-month maturity
– Used to finance daily government spending (until tax
revenues come in)
– Have no interest payment, but sold at a discount.
– Most liquid due to large volume actively traded daily.
– No possibility of default (the issuer cannot pay interest or
principal) due to the government’s taxing power and its
ability to issue currencies if necessary for payment.
27. Negotiable Bank Certificates of Deposits
• Certificate of deposits: a debt instrument issued by a
bank to depositors that pays annual interest of a given
amount and pays back at maturity the original
purchase price.
• Negotiable CDs are CDs that can be sold in
secondary markets.
– Usually the minimum denomination is $100,000.
28. Commercial Paper
• Commercial paper: a unsecured short-term debt
instrument issued by large banks and well-known
corporation.
– Up to 270 days of maturity
– Used for daily cash management, not for financing long-
term investment projects.
29. Repurchase Agreements
• Repurchase agreement (repo): an agreement that one
party sell securities to the other party with a promise
that the former will buy it back the securities from the
later at the set price.
– It is effectively short-term loan for which often U.S.
Treasury bills serve as collateral (an asset that the lender
receives if the borrower does not pay back the loan).
– Usually maturity of less than two weeks
– Analogy: Pawnshop [This is not repo, but the mechanism
behind is same.]
30. Federal Funds
• Federal funds: overnight inter-bank loans (loans between banks)
of deposits at the Federal Reserves.
– One bank has too much deposits at the Federal Reserves, while other
bank does not have enough. Then, the former loans excess deposits at
the Fed to the later.
• Note: the Federal Reserve acts like a bank for banks and each bank
must maintain certain amount of deposits at the Federal Reserve.
This will be discussed in detail on Learning Unit #20)
• Federal funds rate: the interest rate on federal funds
– The Federal Reserve sets its target rate on the federal funds as its
monetary policy tool. This will be discussed in detail on Learning Unit
#23.
31. Banker’s Acceptance
• Banker’s acceptance: a bank draft (like check) issued
by a firm, payable at some future date, and
guaranteed by the bank that stamps it “accepted.”
– An accepting bank requires the issuing firm to deposit the
required funds into a special account.
– Used for foreign trades where exporters and importers do
not each other, but they know some large banks in two
countries
– Analogy: you sell a good at e-bay to someone. You may
not accept any personal check from him, but PayPal
payment since you know PayPal). [This is NOT a banker’s
acceptance, but the mechanism behind is same.]
33. Example of Money Rates on Barron’s
Dow Jones’ publishes money market rates every day on
“Money Rates” section of the Wall Street Journal and
weekly on “Money Rates” section of Barron’s.
– See “How to Interpret Money Rates of Barron’s” on
Blackboard
– WSJ provides money rates on the previous trading day, one
week ago, and highest and lowest in last one year.
– Barron’s provides money rates on last Friday (Barron’s is
issued on every Monday), on Friday one week ago, and on
Friday one year ago.
34. U.S. Government Securities
• U.S. Treasury Notes and Bonds: intermediate-term
and long-term debt instruments of the U.S.
government
– three- and five-year maturity for Notes and ten-and 30-year
maturity for Bonds
– Used to finance the deficits of the federal government (to
make payments later years with future tax revenues)
– The most liquid capital market instrument
35. U.S. Government Agency Securities
• Long-term bonds issued by various government
agencies and GSE (Government Sponsored
Enterprises) to finance specific government programs.
– Ginnie Mae (Government National Mortgage Association)
within Department of HUD guarantees bonds backed by
home mortgages that have been guaranteed by a government
agency (FHA).
– Federal Farm Credit Bank issues bonds and offer loans,
leases and financial services to U.S. farmers.
– TVA (Tennessee Valley Authority)
36. State and Local Government Bonds
• States and local government bonds: intermediate-term and long-
term debt instruments of the state and local governments (e.g.
State of North Carolina, Guilford county, city of Greensboro)
– They are called “municipal bonds” (muni).
– Used to finance expenditures on schools, roads, and other
programs (e.g. water system).
– Revenue bonds: payments on bonds are made out of revenues
raised from the program for which the proceeds of bonds are
used to finance.
– General obligation bonds: payments on bonds are made out
of tax revenue of the state or local government.
37. Corporate Stocks and Bonds
• Stocks: equity claims on the net income and assets of
a corporation.
– Common stocks and preferred stocks
– Stocks are by far the largest capital market instruments, but
the amount of new stock issues is very little each year.
• Corporate bonds: long-term bonds issued by
corporations with very strong credit rating (low risk).
– The size of corporate bond market is much smaller than the
stock market, but the amount of new corporate bond issued
each year is much greater than the new stock issues.
38. Mortgages
• Mortgage: loans to households or firms to purchase
housing, land, or other real structure.
– The structure or land serve as collateral for the loans.
• Mortgage-backed securities: A bond-like debt
instrument backed by a bundle of individual
mortgages, whose interest and principal payments are
collectively paid to the holders of the security.
– Fannie Mae (Federal National Mortgage Association),
Freddie Mac (Federal Home Loan Mortgage Corporation)
39. Consumer and Bank Commercial Loans
• Consumer loans are made to households by banks and
finance companies.
– Credit card loan: $679 billion in the first quarter of 2012
– Auto loan: $737 billion in the first quarter of 2012
– Student loan: $904 billion as of March 31, 2012
• Commercial loans are made to businesses primarily
by banks.
41. Disclaimer
Please do not copy, modify, or distribute this presentation
without author’s consent.
This presentation was created and owned by
Dr. Ryoichi Sakano
North Carolina A&T State University