TAILIEUCHUNG - Lecture Business finance - Chapter 8: The capital market

Chapter 8 introduces you to the capital market. The goal is for you to learn: Understand the functions of a capital market; distinguish between the roles of financial agency institutions, financial intermediaries and investing institutions; identify and explain the role of financial agency institutions, financial intermediaries and investing institutions. | Chapter 8 The Capital Market 2 2 2 2 2 2 Learning Objectives Understand the functions of a capital market. Distinguish between the roles of financial agency institutions, financial intermediaries and investing institutions. Identify and explain the role of financial agency institutions, financial intermediaries and investing institutions. 2 2 2 2 2 2 The Flow of Funds An economic entity will be either a ‘savings deficit unit’ or a ‘savings surplus unit’ (over a given period of time). The financing process involves a flow of funds from the savings surplus units to the savings deficit units. The flow of funds may be direct or indirect. 3 3 3 4 4 4 Financial Intermediaries Financial intermediaries are institutions that act as a principal in accepting funds from depositors and lending them to borrowers. They enable the preferences of savers and lenders to be matched. This is achieved via: Asset transformation Maturity transformation Credit risk diversification Creation of liquidity 4 4

• Tài chính doanh nghiệp
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Financial intermediaries
• Financial agency institution
• Sources of finance
• Leasing finance
• Sources of long term finance
• Long term finance
• Equipment finance
• Ordinary shares
• Long term debt
• Dividend Policy
• Capital structure
• Capital structure decisions
• Capital market efficiency
• Futures contracts
• Option markets
• Analysis of takeovers
• International financial management
• Management of short term assets
• Financial decisions
• Financial mathematics
• The time value of money
• Project evaluation
• Project evaluation methods
• Portfolio theory
• Aasset pricing
• Sources of short term debt