Académique Documents
Professionnel Documents
Culture Documents
and Institutions
1
Chapter Outline
We examine the role of the financial system in an
advanced economy. Topics include:
Direct Financing
Funds
Indirect Financing
A financial
Transfer of Funds on
Financial Market
Willing
Secondary
securities
10
Capital
12
Stocks
Stocks
13
Derivative securities
Derivative
14
15
Commercial banks
Are
16
Savings institutions
Include
Credit unions
Are
nonprofit organizations
Restrict their business to credit union members
Tend to be much smaller than other depository
institutions
17
18
Mutual funds
Sell
19
Securities firms
Broker
function
Investment
Dealer
banking function
function
20
Insurance companies
Provide
21
Pension funds
Offered
Purchase
Individual
Surplus Units Securities
Purchase Shares
Policyholders
Employers
Employees
Premiums
Employee
Contributions
Depository
Institutions
Finance
Companies
Mutual Funds
Deficit Units
Insurance
Companies
Pension Funds
23
Depends
on:
24
Economies of scale
Economies of scope
Mergers
25