Tudorescu Corina

Seria C, Grupa 1516

HOMEWORK
III. FINANCIAL MARKETS

III. a) – 1
b) -2
c) – 5
d) – 3
e) – 4

IV.
Financial intermediaries Definitions
Privately owned financial institution which accepts
demand and time deposits, makes loans to individuals
commercial bank and organizations, and provides services such as
documentary collections, international banking, trade
financing.
financial institution that specializes in services such as
acceptance of bills of exchange, hire purchase or
installment buying, international trade financing, long-
merchant bank term loans, and management of investment portfolios. It
also advises on (and invest own funds in) acquisitions,
mergers, and takeovers.
A business that provides coverage, in the form of
compensation resulting from loss, damages, injury,
treatment or hardship in exchange for premium
insurance company payments. The company calculates the risk of occurrence
then determines the cost to replace (pay for) the loss to
determine the premium amount.
Pooled-contributions from pension plans set up by
employers, unions, or other organizations to provide for
pension fund the employees' or members' retirement benefits. They are
the largest investment blocks in most countries and
dominate the stock markets where they invest.

An investment vehicle managed by finance professionals

that raise capital by selling shares (called units) in a
chosen and balanced set of securities to the public. A
mutual fund's capital is invested in a group (portfolio) of
mutual fund corporate securities, commodities, options, etc., that
match the fund's objectives detailed in its prospectus. The
level of its income from its portfolio determines the daily
market value (called net asset value) at which its units are
redeemable on any business day, and the dividend paid to
its unit holders.

V.
1. financial market investment- investiții pe piața financiară
2. movement market securities- titluri de piață în mișcare
3. public market indicator- indicator al pieței publice
4. volatility market participants- participanții la piață de volatilitate
5. tops market stake- cota de piață
6. bottoms market stake- cota pieței de fonduri
7. privat market returns- rentabilitatea pieței private
8. stock market behavior- comportamentul bursei
VI.
………Money market…………
Money is synonym with liquidity. Specialized markets developed to meet the specific
requirements of particular borrowers for short-term investment capital and lenders to regain
liquidity when desired. Financial institutions, governments and dealers produce cash by using
high liquidity investment and short-term maturity borrowing on over-the-counter interbank
market. Due to the extremely liquid nature of securities and their short-term maturities,
money market is considered a safe exchange. Money markets facilitate efficient transfer of
short-term funds between holders and borrowers of cash assets. Treasury bills, commercial
papers, bankers acceptances are bought and sold and provide a good return to their dealers.
Domestic and foreign credit institutions participate regularly in this market in order to
manage their liquidity position. Brokers established the inter-bank deposits market by which
surplus funds owned by banks can be lent to those who have immediate outlets for such
funds. These markets ensure liquidity and make monetary policy objectives reliable.
……Bond market…….
Long-term debt or equity-backed securities are bought and sold on a different type of market
for long-term productive investment. Nowadays they are invariably hosted on computer-
based electronic trading systems which are accessed by financial entities and treasury
departments of governments and corporations, and also by the public. They are regulated by
the central Banks and specialized government commissions.
They are divided into primary market and secondary market. In the former one, investors
raise long-term funds by underwriting the newly issued stock or bonds. Governments issue
only bonds, whereas companies often issue either equity or bonds. The main entities
purchasing the bonds or stock are the pension funds, hedge funds, sovereign wealth funds,
and investment banks. Existing securities are sold and bought among investors or traders on
the secondary market, i.e. exchanges and over-the counter markets. Stock markets trade
equity securities, also known as shares, where investors acquire ownership of companies
whereas bond markets trade bond making investors become creditors).
VII.
Both brokers and traders buy and sell securities, but there are some subtle differences
between the two careers. Brokers are also …sales agent…that work on their own behalf, or
for a securities or brokerage firm. Traders usually buy or sell on behalf of the assets managed
by a large …investment management firm…. . Brokers have direct contact with clients and
are responsible for maintaining and obtaining a client roster, while traders follow the
instructions of a…portfolio manager .. Traders and brokers both need to possess high
energy and strong communication skills. They must be able to multi-task, cope well with
pressure, and have a big appetite for learning all things related to the …financial
markets.. .Many study economics, finance or business in college, but some come from
liberal arts backgrounds. And some enter these fields with prior business experience,
frequently in sales, which is highly valued. Obtaining a FINRA1 license to buy and sell
securities is required, and that means passing the series 7 exam. Brokers spend a typical day
keeping clients informed on…..stock prices … They also look for new clients through tactics
such as cold calling or holding seminars. Both brokers and traders review

1
Financial Industry Regulatory Authority