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    Financial Markets Overview

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    Mary Benedict Abragan
    The document summarizes the first chapter of a book on financial markets and institutions. It describes how the chapter discusses the basic operations of domestic and foreign financial markets, how funds flow through the economy from lenders to borrowers, and the markets and instruments used. The chapter also examines the need for financial managers to understand how domestic and international markets work and the various factors that impact the services financial institutions provide.

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    Financial Markets Overview

    Uploaded by

    Mary Benedict Abragan
    33 views1 page
    The document summarizes the first chapter of a book on financial markets and institutions. It describes how the chapter discusses the basic operations of domestic and foreign financial markets, how funds flow through the economy from lenders to borrowers, and the markets and instruments used. The chapter also examines the need for financial managers to understand how domestic and international markets work and the various factors that impact the services financial institutions provide.

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    The document summarizes the first chapter of a book on financial markets and institutions. It describes how the chapter discusses the basic operations of domestic and foreign financial markets, how funds flow through the economy from lenders to borrowers, and the markets and instruments used. The chapter also examines the need for financial managers to understand how domestic and international markets work and the various factors that impact the services financial institutions provide.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views1 page

    Financial Markets Overview

    Uploaded by

    Mary Benedict Abragan
    The document summarizes the first chapter of a book on financial markets and institutions. It describes how the chapter discusses the basic operations of domestic and foreign financial markets, how funds flow through the economy from lenders to borrowers, and the markets and instruments used. The chapter also examines the need for financial managers to understand how domestic and international markets work and the various factors that impact the services financial institutions provide.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Name: Abragan, Mary Benedict T.

    Section: BSA – 1C

    The first chapter of the book Financial Markets and Institution by Saunders talks about
    the fundamentals of the basic operations of the domestic and foreign financial markets and
    institutions. It does describe the ways in which how the funds flow through the system of
    economy from the transactions of both the lenders to borrowers and outlined the markets and
    instruments that lenders and borrowers do employ in order to complete the process. Beyond
    that, the first chapter also discussed the need for Financial Institute managers to fully
    comprehend the function and how do the domestic international markets works. It is also
    identified the other various factors that do impacts the specialness of the services Financial
    Institute to provide and the manner in which they improve the efficiency of the funds that flow
    from the supplier of funds to the ultimate users of the funds. Though some of the forces like the
    usage of technology and especially the Internet are powerful enough that in the future Financial
    Institutes that have historically relied on making profits by performing traditional special
    functions such as brokerage will need to expand the array of their financial services that they
    sell as well as the way that such services are distributed or sold to their customers.

    Chapter 1 Overview:

     Financial Markets: It is the institutions that perform the essential function of channeling
    funds from those with surplus funds to those with shortages of funds.
     Primary Markets: Markets in in which corporations raise funds through new issues of
    securities.
     Secondary markets: Markets that do trade the financial instruments once they are
    issued.
     Money markets: Markets that trades debt securities or instruments with maturities
    of less than one year.
     Capital markets: Markets that trade debt (bonds) and equity (stocks) instruments with
    maturities of more than one year.
     Foreign exchange markets: Markets in which the cash flows from the sale of products or
    assets denominated in a foreign currency are transacted.
     Derivative markets: Markets in which derivative securities are trade
     Financial Market Regulation
    o Securities and Exchange Commission
    o Main emphasis on full and fair disclosure of information on securities issues to
    actual and potential investors
    o Required to register securities with the SEC an full describe them

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