Professional Documents
Culture Documents
• Direct transfers
• Investment banks
• Financial intermediaries
2-3
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
What is a market?
2-4
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Financial Markets
2-5
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
The Importance of Financial Markets
• Investment banks
• Commercial banks
• Financial services corporations
• Credit unions
• Pension funds
• Life insurance companies
• Mutual funds
• Exchange traded funds
• Hedge funds
• Private equity companies
2-8
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
Physical Location Stock Exchanges vs. Electronic
Dealer-Based Markets
2-9
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Stock Market Transactions
2-10
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
What is an IPO?
2-11
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
What is meant by stock market efficiency?
2-12
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
Implications of Market Efficiency
2-13
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied, or duplicated, or posted to a publicly accessible website, in whole or in part.
Implications of Market Efficiency