Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Financial Markets

No description
by

Antonin Vinet

on 3 October 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Financial Markets

What is a market?
Borrowers
Investors
(Lenders)
Financial Markets
Cost (interests)
"Return"
What is a market?
Different types of markets
Instruments
What's essential ?
Rating Agencies
Primary/Secondary Markets
Risk Reward

Governments
Companies
Banks
Pension Funds
Insurance Companies
Money Markets
Capital Markets
Short-term
> 12 mth
Equity Markets
Debt Markets
Shares (stocks)
Publicly Traded on Exchanges
NYSE / Euronext/London Stock Exchange
size = ~ $40 trillions
Bonds
Why do we borrow money ?
Why do we lend money
How do you Invest Money?
Direct Investing
Indirect Investing
Stocks (ownership of a company)
Stocks
Common Stock (Voting rights/right to dividends qtrly payments/capital gains/preemptive rights/right to residual claims on assets
Preferred Stock (paid first in case of bankruptcy, pref stocks are usually more expensive/ensure payment of dividends)
Bonds
Long term debt issued by a corporation or a government
MTY date
Issued at Par Value
Premium
Discount
Coupon rate – interest payment as percentage of Par Value
Yield

Mutual Funds
Mutual Funds
Diversification
Professional Management
Variety
Liquidity
Fees

Exchange Traded Funds (ETFs)
Features of stocks and mutual funds
Ownership in a market basket of stocks
You can buy and sell ETFs at any time of the day, unlike mutual funds
SEC in the US (Securities and Exchange Commission)
FSA mission split into Prudential Regulation Authority, Financial Conduct Authority, Bank Of England
Regulators
Primary/Secondary Market
Initial Public Offering (IPO) → difference public/private Equity, facebook
Secondary Market Security exchanges
Shares/Bonds
Rating
Maturity
Financial Markets
Rating Agencies
3 main agencies: S&P (Standard&Poors), Fitch, Moody's
Rating Table
Conflict of interests ?
~12 mth Maturity
Lower Risk
OTC
Loans
Exchange Traded Funds
Bonds (debt)
First of all:
Mission?
Statutory Objectives:
market confidence: maintaining confidence in the financial system;
financial stability: contributing to the protection and enhancement of stability of the UK financial system;
consumer protection: securing the appropriate degree of protection for consumers; and
reduction of financial crime: reducing the extent to which it is possible for a business carried on by a regulated person to be used for a purpose connected with financial crime.
S&P World Ratings
Size= ~ 90 trillions
What?
Where?
Size?
Full transcript