Professional Documents
Culture Documents
Chap 001
Chap 001
The Investment
Environment
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The Players
Business Firms net borrowers
Households net savers
Governments can be both borrowers and
savers
Financial Intermediaries
Investment Companies; invests mainly in
securities
Banks
Insurance companies
Credit unions
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Recent TrendsGlobalization
American Depository Receipts (ADRs)
claim in shares of a foreign company
Foreign securities offered in dollars
Mutual funds that invest internationally
Variant of ADR: Exchange Traded Funds
(ETFs) ,diversified investment in foreign
shares, e.g. iSHAREs, WEBS
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Recent TrendsSecuritization
Mortgage pass-through securities
Other pass-through arrangements
Car, student, home equity, credit card
loans
Offers opportunities for investors and
originators
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