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    Sepi Group List Final

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    Saqib Rehan
    This document provides an overview of key topics in business finance including: 1) The importance of financial markets in facilitating the flow of funds through direct transfers, investment bankers, and financial intermediaries. 2) The different types of financial markets such as money markets, capital markets, debt markets, equity markets, and derivatives markets. 3) The investment banking process of raising capital through initial decisions about funding needs and securities, and subsequent decisions around structuring the offering.

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    Sepi Group List Final

    Uploaded by

    Saqib Rehan
    9 views11 pages
    This document provides an overview of key topics in business finance including: 1) The importance of financial markets in facilitating the flow of funds through direct transfers, investment bankers, and financial intermediaries. 2) The different types of financial markets such as money markets, capital markets, debt markets, equity markets, and derivatives markets. 3) The investment banking process of raising capital through initial decisions about funding needs and securities, and subsequent decisions around structuring the offering.

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    This document provides an overview of key topics in business finance including: 1) The importance of financial markets in facilitating the flow of funds through direct transfers, investment bankers, and financial intermediaries. 2) The different types of financial markets such as money markets, capital markets, debt markets, equity markets, and derivatives markets. 3) The investment banking process of raising capital through initial decisions about funding needs and securities, and subsequent decisions around structuring the offering.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views11 pages

    Sepi Group List Final

    Uploaded by

    Saqib Rehan
    This document provides an overview of key topics in business finance including: 1) The importance of financial markets in facilitating the flow of funds through direct transfers, investment bankers, and financial intermediaries. 2) The different types of financial markets such as money markets, capital markets, debt markets, equity markets, and derivatives markets. 3) The investment banking process of raising capital through initial decisions about funding needs and securities, and subsequent decisions around structuring the offering.

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    You are on page 1of 11

    FIN 201 Introduction to Business

    Finance
    Session 3 4

    Fall 2016

    Zaufishan Zaidi
    Importance of Financial Markets
    Flow of Funds
    1. Direct Transfer
    2. Indirect Transfer through an Investment Banker
    3. Indirect Transfer through a Financial Intermediary
    Importance of Financial Markets
    Market Efficiency
    Economic Efficiency
    Informational Efficiency
    Weak Form
    Semi-strong
    Strong
    Types of Financial Markets
    Money Markets vs Capital Markets

    Debt Markets vs Equity Markets

    Primary Markets vs Secondary Markets

    Derivatives Markets
    Call Option
    Put Option
    Futures
    Types of Stock Market activities
    1. Trading in the outstanding, previously issued shares of established,
    publicly owned companies: the secondary market
    2. Additional shares sold by established, publicly owned companies: the
    primary market
    3. New public offerings by privately held firms: the initial public offering (IPO)
    market; the primary market
    Stock Markets
    Physical Stock Exchange
    Exchange Members
    Listing Requirements

    The Over-The-Counter (OTC) Market


    Investment Banking Process
    Raising Capital: Stage I Decisions
    Dollars to be raised
    Types of securities used
    Competitive bid versus negotiated deal
    Selection of an investment banker

    Raising Capital: Stage II Decisions


    Reevaluating the initial decisions
    Best Efforts or Underwritten issues
    Issuance (floatation) costs
    Setting the offering price
    Financial Intermediation
    Benefits
    Economic well-being
    Reduced Costs
    Risk Diversification
    Funds Divisibility/Pooling
    Financial Flexibility
    Related Services
    Financial Institutions
    Commercial Banks
    Mutual Funds
    Whole Life Insurance Companies
    Pension Funds
    Financial Crisis 2007-08

    Video
    Financial Crisis 2007-08
    Leverage

    Collateralized Debt Obligations

    Credit Default Swap

    Sub-prime Mortgages

    Frozen Credit Markets

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