Capital Markets Course 2. II. Capital Markets - Characterization Open Medium and long term Securities can be negotiated and transferred No direct trading.

Slides:

Advertisements

Similar presentations

Financial Management –Spring 2013 Chapter 2: Financial Markets And Institutions 1.The Importance of Financial Institutions 2.The Flow of Savings to Corporations.

Advertisements

CAPITAL MARKETS PRESENTED BY ANWAR MISBAH SOUBRA, Phd.

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Futures Markets and Risk Management 17 Bodie, Kane, and Marcus.

Paola Lucantoni Economic and Financial Market Law.

Capital Markets.

Chap. 1 The Study of Financial Markets Financial Markets – A Definition: –Markets in which funds are transferred between savers (investors) and borrowers.

Chapter 14 - Raising Capital in the Financial Markets.

Welcome to class of International Financial Management by Dr. Satyendra Singh University of Winnipeg Canada.

Financial Management and Securities Markets Chapter 16 *modified by other sources.

Financial Intermediaries Indirect Finance –An Institution stands between lender and borrower. Direct Finance –Borrowers and lenders deal directly with.

Chapter 1. Introduction financial assets financial markets derivatives markets financial assets financial markets derivatives markets.

Money Functions of money –Medium of exchange –Unit of account –Store of value Flavors of money –Commodity money –Banknotes … backed by gold or silver reserves.

Business Organization and Financial markets Some basic concepts Financial management: Lecture 2.

Chapter 2: An Overview of the Financial System Classifying Financial Markets Financial Market Instruments Financial Intermediaries Regulation Classifying.

Spring-03 Investments Zvi Wiener Investments, BKM Ch 1.

 The McGraw-Hill Companies, Inc., 1999 INVESTMENTS Fourth Edition Bodie Kane Marcus Irwin/McGraw-Hill 23-1 Futures and Swaps: A Closer Look Chapter.

© 2004 Pearson Addison-Wesley. All rights reserved 2-1 Function of Financial Markets 1. Allows transfers of funds from person or business without investment.

An Overview of the Financial Markets Copyright 2014 by Diane Scott Docking 1.

Michal Bodlák. Definition  An investment bank is a financial institution that assists: individuals, corporations and governments companies involved in.

26 th Oct. ‘09 Duration: 1 hour 30 mins Capital Marketing.

BUCHAREST STOCK EXCHANGE. BRIEF HISTORY July 1, 1881  July 1, 1881  “Law on exchanges, securities, and commodities brokers” was adopted after the French.

Financial Markets: Saving and Investing

The International Financial System

4-1 CHAPTER 2 The Financial Environment: Outlines Financial Markets Financial Institutions.

Stock Market Teacher: Washington Macías R. ICHE - ESPOL.

Chapter 11  Long - Term Liabilities. Chapter 11Mugan-Akman Long-term Financing Capital or Long-term Liability advantages of raising capital.

Understand financial markets to recognize their importance in business. Types of financial markets Money market, Capital market, Insurance market,

1 Chapter 2 Flow and Sources of Real Estate Funds.

Financial System By-Arbin Shrestha. What is Financial System? System that allows the transfer of money between savers and investors and borrowers. “A.

2-1 Copyright © 2006 McGraw Hill Ryerson Limited prepared by: Sujata Madan McGill University Fundamentals of Corporate Finance Third Canadian Edition.

Essentials of Investments © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Fourth Edition Irwin / McGraw-Hill Bodie Kane Marcus 1 Chapter 2.

EXCHANGE MARKET OF KAZAKHSTAN The 3rd Asia-Pacific New Markets Forum Busan Korea, June 15-17, 2006 Idel Sabitov First Vice-president / Kazakhstan Stock.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.

Financial System is a platform where the savers and borrowers come together and this results in the smooth functioning of economic activities.

Chapter 2 Financial Markets and Institutions

Financial Literacy FINAL VOCABULARY By: Zack Clary.

Financial Markets & Institutions

Money Management in the Organizations 1- Accounting activities: Recording and analyzing monetary information 2- Financial activities: Fund (money) raising.

Investment Analysis Lecture1 Introduction: Financial System, Institutions & Instruments Nadir Khan Mengal 5/4/2010.

Bună Ziua!. Financial Institutions and Markets Professor Lal C. Chugh.

Chapter 1 Role of Finance © 2000 John Wiley & Sons, Inc.

1 CHAPTER 1 Overview of Financial Management and the Financial Environment.

2- 1 Chapter Approach  Chapter 2  Financial Markets  Road to success with this chapter material Read Chapter 2 first Print the chapter handout Take.

Chapter 1 Overview of Real Estate Finance. Chapter 1 Learning Objectives Understand the relationship between finance and real estate Understand the relationship.

Capital Markets Course 1. Capital Markets- Introduction Assessment: 40% seminar assessment 60% final assessment Bibliography: Anghelache, G., Piaţa de.

Capital Markets Course 3. III. Equity capital modification. Equity valuation Share characteristics: - Are parts of the share capital - Are equal parts.

1 Lecture 2: Financial markets Mishkin chapter 2 – part A Page 23-28,

Global Capital Market Size Market consists of stocks, bonds, derivatives. Bank loans not included. Bonds include all kinds of debt instruments. Derivative.

1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 9 – Financial Services Bilateral.

Capital Markets Course 13. XIII. Exchange Market Indexes Synthetic products which reflects the securities evolution on market Depending on the component.

Chapter 2 Fundamentals of Corporate Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc.

Capital Market Course 8. VIII. Bonds Valuation Bonds generate future cash flows  we must compare between the future flows and actual cash in hand Nominal.

Capital Markets Course 10. X. Trading on the exchange market Exchange market trades = all buying or selling contracts for securities or other assets on.

Capital Market Course 5. V. Return and Risk The initial investment is 100 m.u., the value increase and we will obtain 130 m.u.  we earn 30 m.u.  Return.

Capital Market Course 7. VII. Bonds Bonds: part of a loan Characteristics: - Medium and long term investment - The holder claim for the issuer - Debtor.

Financial Markets. Types of Assets Tangible Assets Value is based on physical properties Examples include buildings, land, machinery Intangible Assets.

Risk Management Lecture1 Introduction: Financial System, Institutions & Instruments Nadir Khan.

Role of Financial Markets and Institutions

EU RULE FOR FREE MOVEMENT OF CAPITAL

Case 2: Hedge funds and financial markets

Case 2: Hedge funds and financial markets

Fundamentals of Corporate Finance

FINANCIAL DERIVATIVES/SNSCT/MBA

Capital Markets Course 14.

11 Long-term Liabilities.

FIN Introduction Dr. Menahem Rosenberg

17 Futures Markets and Risk Management Bodie, Kane, and Marcus

The Unified Central Securities Depository

Chapter 2 Financial Markets and Institutions

Presentation transcript:

Capital Markets Course 2

II. Capital Markets - Characterization Open Medium and long term Securities can be negotiated and transferred No direct trading

II. Primary and Secondary Market Capital Market Structure Regarding the production and sale of securities. - Primary market: companies are financed directly by issuing shares and bonds. Issuers obtain financial resources. - Secondary market: the traded shares and bonds are already issued. Issuers do not have income and are not directly involved.

II. Romanian Capital Market Development Low for Stock Exchanges, trade intermediary and commodities trade intermediary December 1882: Stock Exchange November 1883: first crash 1885: one intermediar 1904: New Stock Exchange Law 14 th July 1914: the Stock Exchange is closed 1928 – 1933: difficult period June 1948: State property 1 st April 1995: New Stock Exchange

II. Romanian Capital Market Development First steps: - Law 31/ Law 58/ : National Agency for Securities (Agenţia Naţională pentru Titluri de Valoare) and Center for Development and Implementation of the Capital Markets (Centrul de Proiectare şi Implementare a Pieţelor de Capital) : ANTV  AVM (Agenţia Valorilor Mobiliare) : CNVM (Comisia Naţionala a Valorilor Mobiliare) : BVB (Bucharest Stock Exchange) : RASDAQ: support for the mass privatization : law is changing : RASDAQ  merged with BVB : ASF (Authority for Financial Supervision)

II. Romanian Capital Market Development Components: BVB – Bucharest Stock Exchange RASDAQ SIBEX

BET Index Source BVB

II. Securities In accordance with the EU Directives: - Securities - Units in collective investment undertakings - Money market instruments - Futures, forwards, swaps, options - Derivatives on commodities - Any other instrument admitted to trading on a regulated market in a Member State of the EU

II. Securities Securities: - Equities tradable on the capital market - Bonds and other liabilities tradable on the capital market - Other financial assets giving the right to acquire securities by subscription or exchange, generating a cash settlement, excluding instruments of payment  Securities: financial assets not belonging to the banking sector

II. Securities !Recap! Assets: - real - financial: - belong to the banking sector - not belong to the banking sector : - money market - capital market

II. Securities Securities characterized by: - Tradable - They may be issued in materialized or dematerialized form - Generates property and non-property rights Derivatives: - Term Contracts - Options Synthetic financial instruments

Bibliography Anghelache, G., Piaţa de capital în context european, Editura Economică, Bucureşti, 2004 Bodie, Z., A. Kane, and A. J. Marcus, Essentials of Investments, 6th edition, McGraw Hill International Edition,