1. Capital Markets Course 2

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

3. 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.

4. 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

5. II. Romanian Capital Market Development First steps: - Law 31/1990 - Law 58/1991 - 1992: 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) - 1993: ANTV  AVM (Agenţia Valorilor Mobiliare) - 1994: CNVM (Comisia Naţionala a Valorilor Mobiliare) - 1995: BVB (Bucharest Stock Exchange) - 1996: RASDAQ: support for the mass privatization - 2002: law is changing - 2005: RASDAQ  merged with BVB - 2013: ASF (Authority for Financial Supervision)

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

7. BET Index Source BVB

8. 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

9. 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

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

11. 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

12. 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, 2007 www.bvb.ro