Definition: financial assets - An asset that derives value because of a contractual claim. Definition: real/physical assets - An asset that has physical,

Slides:



Advertisements
Similar presentations
The Money Market – By Prof. Simply Simple
Advertisements

Chevalier Spring  Savings – refers to the dollars that become available when people abstain from consumption  Financial System – a network of.
Chapter # 4 Instruments traded on Financial Markets.
Copyright © Cengage Learning. All rights reserved Sources of Long-Term Debt Financing Financial leverage –The use of borrowed funds to increase the return.
WEEK 14: FINANCIAL MANAGEMENT -2 BUSN 102 – Özge Can.
BONDS MK, UNIT 16.
Bonds Add in bond interest ex from book. Bonds Unit 7 - Investing.
I nvestment A nalysis II Investment Analysis II - © 2012 Houman Younessi MGMT-6330 Investment Analysis II 1 Interest Rates, Forwards and Futures.
Warmup Why does the dollar on the left have value, while the one on the right does not?
An Overview of the Financial System chapter 2. Function of Financial Markets Lenders-Savers (+) Households Firms Government Foreigners Financial Markets.
Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.
11B Investing Basics and Evaluating Bonds #2
A certificate issued by a bank depositing money in an account for a specified period of time (often six months, one year, or two years); a penalty is.
 An Overview of Corporate Financing Chapter 14. Topics Covered  Patterns of Corporate Financing  Common Stock  Preferred Stock  Debt  Derivatives.
Business in Action 6e Bovée/Thill Financial Management Chapter 18.
1 Financial Management Lecture No. 14 Bonds - Valuation & Theory Batch 4-2.
Summary of Last Lecture: Capital Rationing IRR and NPV interpretation with limited capital.
Unit 12.1AMoney and financial institutions Unit 12.1BThe role of government in the macro-economy Unit 12.2AMacroeconomic equilibrium Unit 12.2BEconomic.
Lecture 7: Measuring interest rate
Copyright: M. S. Humayun1 Financial Management Part II (Securities) Lecture No. 13 Intro to Bonds - Classification & Concepts (Direct Claim Paper Securities)
18-1 Financial Management Chapter 18. Chapter 18 Objectives After studying this chapter, you will be able to: Identify three fundamental concepts that.
Financial Assets (Instruments)
Financial Instruments
RECAPE LAST CLASS. FINANCIAL SECURITIES & MARKETS IF THE FIRM DECIDE TO ARRANGE ADDITIONAL FINANCING, THEY HAVE TWO CHOICES: 1. TO SEEK ADDITIONAL OWNERS.
THE NEED FOR CAPITAL * START-UP OR VENTURE CAPITAL * WORKING CAPITAL * INVESTMENT CAPITAL.
 Why is it important for you to start saving now? SLID E 1.
Chapter 8 Budgets and Financial Records
Financial Management 1. Every decision that a business makes has financial effects. So everything that a business does fits under the heading of finance.
Financial Management Chapter 18. Financial Management Chapter 18.
Chapter 11  Long - Term Liabilities. Chapter 11Mugan-Akman Long-term Financing Capital or Long-term Liability advantages of raising capital.
The Money Market – By Prof. Simply Simple The Money Market is a place for large institutions and the government - to manage their short term cash needs.
Money doesn't create man but it is the man who created money. -Warren Buffet.
Lesson 5-8 Simple Interest.
ALOMAR_212_4 1 Financial Market Instruments. ALOMAR_212_42 What are the securities (instruments) traded in the financial market? 1- Money Market Instruments:
Entrepreneurship Series
Chapter 4: Interest Rates
Balance Sheet A balance sheet is one of the three annual financial statements that companies are legally required to produce for auditing purposes. It.
Chapter Sixteen Physical Capital and Financial Markets.
Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Key Terms property financial claim credit creditor Section.
Bonds and Mutual Funds.  A bond is a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due.
Financial Management B 642
money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)
Alli Watkins. What are bonds? Bonds are like loans, where you are the lender and the government or big companies is the borrower. They are NOT INSURED.
Bonds and Bond Pricing (Ch. 6) 05/01/06. Real vs. financial assets Real Assets have physical characteristics that determine the value of the asset Real.
UNIT 5: Investing Part 4.5: Corporate Bonds Dollars & Sense.
Copyright: M. S. Humayun Financial Management Lecture 2 Addendum Some Definitions.
Financial Literacy FINAL VOCABULARY By: Zack Clary.
9.02 Investing in bonds. T H17. Investing in Bonds Bonds –Promise to pay a definite amount of money at a stated interest rate on a specified.
Copyright © Cengage Learning. All rights reserved Short-Term Debt Financing Short-term financing is usually easier to obtain than long-term –Shorter repayment.
money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)
NIS Economics Financial Markets (non-bank Financial Institutes and assets)
FINANCIAL MANAGEMENT IN HEALTHCARE – Stock Markets 13 th Jan 2012 By Atul Kochhar.
Obtain Finance. Types Finance Secured Finance – Finance is given in return for security over an asset – The security is a guarantee that lender has first.
Chapter 17 Financing a Business Methods of Obtaining Capital Selecting a Method of Obtaining Capital Sources of Outside Capital.
15 International Operations © 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale.
Bond Issuer (Borrower) Trustee Bond Holder (Lender or Investor) General Public Financial Intermediary Corporation or Government Bond Certificates are exchanged.
The Need for Capital Firms need capital to finance projects or purchase physical assets Investors have more than needed for immediate consumption Transfer.
 A holding place for money at a bank.  The amount available to spend in an account.
 Capital Spending: money spent by a business for an item that will be used over a long period.  Capital Projects: spending by businesses for items such.
Chapter 15-1 CHAPTER 15 LONG-TERM LIABILITIES Accounting Principles, Eighth Edition.
Investing in Mutual Funds. What Are Mutual Funds?  A mutual fund is a professionally managed group of investments using a pool of money from many investors.
Significant debt needs of a company are often filled by issuing bonds. BondsCash Bond Liabilities.
CREDIT. The Need for Credit  Credit is buying now and paying later  Today 80% of purchases are made with credit  Qualifying for Credit  Income- Money.
18 Credit: ways and places. Learning Objectives Compare and contrast the different methods of borrowing. Compare and contrast the different institutions.
082SIS52 Ryu Soo-hyun. Money Market  Money Market - Subsection of fixed income market - financial market for short-term borrowing & lending - provides.
Property and Financial Claims. Property Property is anything of value that a person or business owns and therefore controls A major function of accounting.
What is a Debt instrument? Example: Bond Interest Rate
Financial Accounting Chapter Liabilities
Property and Financial Claims
TYPES OF FINANCIAL ASSETS
Presentation transcript:

Definition: financial assets - An asset that derives value because of a contractual claim. Definition: real/physical assets - An asset that has physical, tangible worth, Like land, property, a car, a machine, equipment, etc. Unlike land and property--which are tangible, physical assets--financial assets do not necessarily have physical worth. Their physical worth is merely the value of the paper on which they are printed. An asset is…

A asset is… Financial assets: Real assets: No physical worth, simply a document Examples: land, property, a car, a machine, equipment, etc. Examples: A stock, A bond, Bank account, etc

A financial asset is… 1. Financial asset: 2. Physical asset: No physical worth, simply a document These have physical worth.

Definition: A financial asset - A bond is legal document (piece of paper). On this paper a contract is Described. It’s a debt instrument that a government or a company issues to raise money. Basically it is a contract between a government or a company—who is acting as the borrower— and investors like you—who are acting as the lender. Financial asset 1: Bonds

When you buy a bond, you are lending money to the government or a company which issued the bond, and in return, the government or company agrees to pay your money back, with interest, at some point in the future. You are the creditor, and the other party is the borrower. The bond document states: 1 – the interest you will be paid for the loan 2 – the life of the bond (the date of maturity, e.g. 6 months) Financial asset 1: Bonds

For example: A bond may have a life of 2 years and a return of 7% (Called a coupon rate): January 1:Regular interest dateBond MATURITY DATE. You pay $100 You get $7 You get $7 (face value of bond)Regular interestRegular interest You get $100 (face value) Bond maturity Financial asset 1: Bonds Jan 1, 2014Jan 1, 2015Jan 1, 2016 Invest: $100 Return: $7 Return: $107

Definition: A Loan- A loan is legally binding agreement Between two parties. Stipulating the amount of the loan The interest rate And the life of the loan And the amount and time of The repayments It’s a debt instrument that is used by individuals, government and companies in order to purchase goods and services. Examples: Car loan, home loan, personal load, business loan, government foreign debt, etc. Financial asset 2: Loan

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.