a { Financial Markets G4 Financial Market ~ is any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currency and derivatives and other financial securities. + Also, it can be defined as an organized forum: which the suppliers and users of various types of funds can make transactions directly. Philippine Stock Exchange (PSE) and the Makati Stock Exchange (MSE) markets trade trillions of Pesos daily. ”Isa financial market in which financial instruments with high liquidity and very urities (from several days to just under a year)are traded, They are created because some individuals, businesses, governments, and financial institutions have temporarily idle funds that th 0 invest in a relatively safe, interest-bearing asset. ‘At the same time, other individuals, businesses, governments, and financial institutions find themselves in need of seasonal or tempor ncing. Instruments being traded here is Treasury Bills, Commercial Papers, Certificate of Deposits, etc. Cn the other hand, securities with longer-tern ities are sold in Capital markets. Any government or corporations requires capital or funds to finance its operation and its long-term investment ‘To do this, they raises funds through the sale of securities — either Stocks or Bonds. Bond Market (Debt or Credit Market) - debt investment in which the ifestors grants loan to a company or government for a defined period of ce interest rates, Bonds are used by companies and government to finance a variety of projects and activities. ‘Stock Market - allows investors to buy and sell shares in publicly traded companies. investors p or funds to companies, on other hand, the companies provide a slice of ownership and potential gain to investors. Shares — Common and Preferred S) Capital MarketTo raise money, users of funds (ex: corporation) will go to a primary market to (either debt or equity) through a public offering or a private placement Public offering - the sale of either bonds or stocks to the general public. Initial Public Offering (IPO) ~ the first offering of stock Private placement - The sale of a new security directly to an investor or group of investors. However, suppliers of funds or the holders of the securities may decide to sell the securities that have previously been purchased. The sale of previously owned securities takes place in secondary markets. The Philippine Stock Exchange (PSE) is both a primary and secondary market Secondary.MarketPrimary Market vs. Secondary Market PT ele a Ela Bice a ET CTey evened Gm bad http://infimoney.in/pri eT ea) mary-and-secondary- ivoocs ness market/eens ue ama ete Droste = https://wwwslideteam.net/business_powerpoint_diagrams/financial instruments-market-type’-ppt-powerpoint-presentation-file-good.htm|The OTC or Over-the-Counter Market is a type of Secondary Market also referred to as a Dealer Market. The term “over-the-counter” refers to stocks that are si xchange such as the Philippine Stock Exchange (PSE). This generally means that the stocks trades here are from very small companies. Foreign Exchange Market - facilitate the trading of foreign exchange. It includes all aspects of elling and exchanging currencies at current or determined prices. + Interbank Market - The interbank market is a network of banks that trade currenci The interbank market is “between banks,” with each trade representing an agreement banks to exchange the agreed amounts of currency at the specified rate on a fixed date + alternately referred to as the cash market or the spot market, poms (reloo eit] ULCFinancial Institutions - int that channel the savings of individuals, businesses, and governments into loans or investments. ° that conducts al transact S such as investments, loans and depositsEWE Masel Commercial Banks Accepts depositSPand provide security and convenience to their customers. Offers clients safekeeping for their money Provide loans to individual and companies who need funds Provide service to general public, Top Banks in the Philippines @ B@meernosan Investment Banks + Although called "banks", thelr 0 diferent than deposit gathering c + ik ie a financial intermediary that performs a variety of services for businesses and some governments, this includes underwriting debts and cs, acting a8 intermediary betwe ‘of securities and the investing public, ting other corporate for ations are far mercial banks, and institutional clients. They alzo provide research and financial advisory services to companies, Provide service to investors, corporation, and (PNB Medco Holdings, inc. (AIRE esc! $ L M I NayarroAmperaCo. gp ASA Focus GROUP.Financial Institutions Investment Companies/Mutual Funds + Is a corporatioh or trust through which Individuals invest in diversified, profession nanaged portfolios of securities by pooling their funds with those of other investors. Enable small investors to enjoy the benefits of investing in a diversified portfolio of securities purchased on their behalf by rofessional investment manag: Onn “ay QATRAM & Sun Life Pension Funds = nana! Instutions that recaNia payments from rmployees and invest the procedfon their shai + Include: pension funds Ike Government Servi unk investment ust fund (UIT), Investment banks, and. credit unions, amongNon-bank Financial Institutions + They are also referred to as + Unlike Commercial Banks, transactions in S&L are dedicated to residential mortzages (65% for more of their lending must be for residential mortgages. + typically offers lower borrowing rates than commercial banks and high: ‘on deposits rs tlm Wressiean Progen, | Another slternative to regular commercial banks, almost organized as not-for-profit cooperatives. Typically offers higher rates on deposits and charge lower rates on loans in comparison to commercial banks. memberships are not open to public, but rather restricted to a particular membership group. (Example: employees of certain companies, members of certain churches and ete. bayanihan re MABUHAY credit union,How Financial Institutions Provide Financing for Firms ‘Commerc Bonks Depository nations hetpsi//ebrary.et/13355/business_finance/ comparison _financial_institutionsroar fi Instruments a a i roe Peete] nr eeieen roared Pe) anes Pee] cory anes panies earss} or Summary: Money Maret Bond Market/ Debt Market Stock market Secondary Market ‘Over the-counter Market (OTC) Foreign Exchange and Interbank Market Financial Institutions ed tears Cees ern Companies / Mutual on ay eee Tod retin Cari