Financial Markets Presentation PDF

REVIEW AND UNDERSTANDING OF FINANCIAL MARKETS KARL ROLAND BLASCO  WHAT IS FINANCIAL MARKET Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Fin...

REVIEW AND UNDERSTANDING OF FINANCIAL MARKETS KARL ROLAND BLASCO  WHAT IS FINANCIAL MARKET Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives. Financial markets facilitate the interaction between those who need capital with those who have capital to invest.  WHAT ARE EXAMPLE OF FINANCIAL MARKET Some examples: bank or credit unions, for loans or savings accounts. securities markets, such as the New York Stock Exchange or the American Stock Exchange, for businesses to acquire investment capital, mutual funds, or bonds.  IMPORTANT OF FINANCIAL MARKET The Financial Market plays a critical role in the modern economy. They facilitate the flow of funds and financial instruments globally, helping to fuel economic growth and development  ROLE OF FINANCIAL MARKET IN THE PH It is an organization whose function is to facilitate the purchase and sale of stocks and other securities. It is a market where investors can buy and sell securities after they have been offered in the primary market.  TWO (2) COMMON TYPES OF FINANCIAL MARKET The two main types of financial markets are Capital Markets and Money Market. The capital market is the market for medium and long term fund The money market is an organized exchange market where participants can lend and borrow short-term, high-quality debt securities with average maturities of one year or less. A type of UITF that is primarily invested in short-term, fixed-income securities with an average investing period of one year or less. It is best suited for conservative investors who aim for high liquidity at a minimal risk but with decent returns on their capital.  WHO BENEFITS THE FOREX MARKET Major players in this market tend to be financial institutions like commercial banks, central banks, money managers and hedge funds. Global corporations use forex markets to hedge currency risk from foreign transactions.  EXAMPLE OF MONEY MARKET Examples of money market placements are time deposits (TDs), Treasury Bills (T-bills), and pooled funds invested in money market placements. Money placed in TDs earn from the interest paid by the bank who issued the TD. WHO USES THE MONEY MARKET For the most part, money markets provide those with funds—banks, money managers, and retail investors—a means for safe, liquid, short-term investments, and they offer borrowers—banks, broker-dealers, hedge funds, and nonfinancial corporations—access to low-cost funds.  MONEY MARKET VS TRADITIONAL SAVINGS Money market accounts may pay a higher interest rate than traditional savings accounts because banks invest in short-term, highly liquid, low-risk assets with the funds. Many money market accounts come with minimum balance requirements Money market accounts may pay a higher interest rate than traditional savings accounts because banks invest in short-term, highly liquid, low-risk assets with the funds.  BOND MARKET The bond market is the collective name given to all trades and issues of debt securities and include corporate, government, and municipal bonds. The Philippine domestic bond market consists of short- and long-term bonds, mainly issued by the national government.  BOND ARE GOOD INVESTMENT? Bonds are a great way to earn income because they tend to be relatively safe investments. But, just like any other investment, they do come with certain risks.  FOREIGN EXCHANGE MARKET The foreign exchange market (also known as forex, FX, or the currencies market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world  TWO (2) MAIN FUNCTION OF FOREIGN EXCHANGE MARKET The foreign exchange market serves two main functions. The first is to convert the currency of one country into the currency of another, and the second is to provide some insurance against foreign exchange risk FOREX WORK The foreign exchange (forex or FX) market is a global marketplace for exchanging national currencies. Because of the worldwide reach of trade, commerce, and finance, forex is the world's largest and most liquid asset market. Currencies trade against each other as exchange rate pairs.