Introduction To Financial Markets
Introduction To Financial Markets
Introduction To Financial Markets
and Institutions?
Mohamed Masry
PhD, MA, MBA, BA
Introduction
➢Welcome to my presentation
➢Your Comfort
➢Asking questions
Presentation Preview
Topics include:
1. Meaning of Financial System.
2. Function of Financial Markets.
3. Structure of Financial Markets
Meaning of Financial System
Indirect Finance
• Borrowers borrow indirectly from lenders via financial
intermediaries (established to source both loanable funds
and loan opportunities) by issuing financial instruments
which are claims on the borrower’s future income or assets.
Flow of Funds without FIs: Direct Finance
Financial Claims
(Equity and debt
instruments)
Lenders Borrowers
Cash
FI
Lenders Borrowers
(Brokers)
FI
Cash (Asset Cash
transformers)
Financial Claims Financial Claims
(Deposits and (Equity and debt
insurance policies) securities)
3. Structure of Financial Markets
There are several basis for classification of Financial Markets: