CHAPTER 1

INTRODUCTION
OF
CAPITAL MARKET
DEFINTION OF FINANCIAL ASSET
Financial asset money at hand,
or easily accessible in the form of
cash deposits, checks, loans,
accounts receivable and
marketable securities.
 Financial asset
a company’s most liquid resources.
• Cash and Cash equivalents
• Short term investment
• Accounts receivable
 THE ROLE OF FINANCIAL ASSET
• To transfer funds from those who have
surplus funds to those who need funds to
invest in tangible asset.
• Transferring funds in such a way as to
redistribute the unavoidable risk associated
with the cash flow generated by tangible
asset among those seeking and those
providing or funds.
 FINANCIAL MARKET
Perform the essential function of channelling funds from
economic players that have saved surplus funds to
those who have a shortage funds.

There exist two different forms of exchange in financial

market.
1. Direct finance
2. Indirect finance
 ROLE OF FINANCIAL MARKET

• FINANCING
• LIQUIDITY
• INFORMATION
 FINANCING
Financial market transfer
funds those who have excess
funds to those who need
funds.
 LIQUIDITY
Ensure owners can buy
and sell financial
instrument cheaply.
 INFORMATION
Pool communication
information about issuers
of financial instrument.
THANK YOU FOR YOUR
COOPERATION!


JERRY M. PALMERA
REPORTER