its great effort by students please appreciate this.... thanks: waqas(nomi bro)

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3. Group information
 Sana Mehreen
 Waqas Ahmad
 Iqra Saeed
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4. CONTENTS
 FINANCIAL MARKETS
 FINANCIAL INSTITUTIONS
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5. I. AN OVERVIEW OF FINANCIAL
MARKETS
 What is Financial Market?
 Structure of Financial markets?
 Instruments traded in Financial
markets?
 Functions of Financial markets
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6. What is Financial system?
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7. What are Financial Markets?
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8. What is Financial Markets?
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We will start our discussion on
financial markets with some basic
definitions……

9. I.2 Structure of Financial Markets
Financial markets can be
categorized as follows:
 Debt vs Equity markets
 Primary vs Secondary markets
 Money vs Capital Markets
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10. Debt
Debt titles are the most commonly traded security.
 Types of Debt:
 short term
 long term
 intermediate terms
Common debt titles are bonds or mortgages.
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11. Equity
“The value of the shares issued by a company.”
○ E.g.:
- Preferred shares
- Common shares
○ Equity do not expire and their maturity is, thus,
infinite.
○ They are considered long term securities.
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12. PRIMARY MARKETS Vs SECONDERY MARKETS
Markets are divided into primary and secondary
markets
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13. MONEY MARKETS VS CAPITAL MARKETS
Finally, we make a distinction between money and
capital markets.
Money markets are markets in which only short
term debt titles are traded.
Capital markets are markets in which longer
term debt and equity instruments are traded.
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14. Functions of Financial markets
Borrowing and Lending
Price Determination
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15. Functions of Financial markets
Coordination and Provision of Information
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Risk Sharing
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16. Functions of Financial markets
◦ Liquidity
◦ Efficiency
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17. FINANCIAL INSTITUTIONS
 What are Financial Institutions?
 Financial Institutions and their function
 Types of Financial Institutions
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18. What are Financial Institutions ?
“Establishment that focuses on dealing
with financial transactions, such as
investments, loans and deposits.
Conventionally”
○we roughly use four categories:
Brokers
Dealers
Investment banks
Financial intermediaries
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19. What are Financial Institutions?
(Cont)
Brokers are agents who match buyers
with sellers for a desired transaction.
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20. What are Financial Institutions?
(Cont)
◦ Like brokers, dealers match sellers and buyers of
financial assets.
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21. What are Financial Institutions?
(Cont)
Investment Banks
○ Investment banks assist in the initial sale of newly
issued securities .
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22. What are Financial Institutions?
(Cont)
 Financial Intermediaries
○ Financial intermediaries match sellers and buyers indirectly
through the
process of financial asset transformation.
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