This course aims to develop students' ability to analyze the structure, operations and functions of financial markets and institutions in hong kong and other leading financial centres. A financial market is a market in which people and entities can trade financial securities, commodities and other fungible assets at prices that are determined by pure supply and demand principles. Financial markets (such as those that trade stocks or bonds), instruments (from bank cds to futures and derivatives), and institutions (from banks to insurance companies to mutual funds and pension funds) provide opportunities for investors to specialize in particular markets or services, diversify risks, or both. The financial services sector offers a number of professional services like credit rating, venture capital financing, mutual funds, merchant banking, depository services, book building, etc financial institutions and financial markets help in the working of the financial system by means of financial instruments.
This course is designed to provide you with a thorough understanding of the importance of money, banking, and financial markets of a developed economy money, financial institutions, and financial markets have emerged as instruments of payments for the services of factors of production, such as labor and capital. The academy of financial markets is a well established and respected brand in the financial services sector established in 1994, the academy of financial markets (afm) provides a range of high quality education and training qualification in the related fields of business and financial markets, as well as fais compliance skills programmes. Here is the best resource for homework help with finance ef5342 : financial systems, markets and instruments at city university of hong kong find find study resources. Mifid markets in financial instruments directive scope of this report the financial system encompasses a wide variety of institutions and services, and.
The purpose of this seminar is to give you a comprehensive overview global financial markets and of their instruments we start with a general overview and discussion of recent developments in the global financial markets, including important regulatory developments, such as basel iii, the trading book review, mifid ii, emir etc. The function of financial markets in the economy a market is a place where supply for a particular good is able to meet demand for it in the case of financial markets, the good in question is money. How financial institutions and markets in various financial instruments make up the global financial system, and the size of this system it also discusses how the global financial. Broadly categorized into money and capital markets while money market is a market in which short term financial instrument are traded, the capital market on the other hand deals with long term transactions. Of financial instruments and by how those instruments are used and in what proportion while capital market instruments such as equities or securities are widespread and represent a significant share of.
The following is a list of the most cited articles based on citations published in the last three years, according to crossref. Financial system of any country consists of financial markets, financial intermediation and financial instruments or financial products seekers of funds (mainly business firms flow of financial services and government. The money and foreign exchange markets are key components of the financial system money markets are the financial markets where short-term financial assets are bought and sold by definition, the financial assets, such as stocks and bonds, that are traded in these markets will mature in one year or less. Financial market gives impetus to the savings of the people this market takes the uselessly lying finance in the form of cash to places where it is really needed many financial instruments are made available for transferring finance from one side to the other side.
A country's financial system consists mainly of the financial instruments ( equity and bond market ), the financial institutions ( commercial banks , central bank , nbfcs ) financial derivatives ( futures , options and many upcoming ) whereas the economy consists of something more than the financial system like household , business ( industry and services ,agriculture also included. Financial market development: a country must have broad, deep, and liquid financial markets so that international investors will have access to a wide array of financial assets denominated in its. Orthodox instruments, open market operations, lending and deposit facilities and reserve requirements, which affect the availability and cost of banking institutions' reserves, and thereby influence overall monetary and credit conditions.
Markets, and some of the instruments5 hopefully, this will allow you to organize your studying of the financial system the chapter will avoid the complications raised in the. The purpose of this paper is to develop an analytical framework for discussing the link between financial systems and economic growth financial systems help overcome an information asymmetry between borrowers and lenders. A financial market is a market where financial instruments are exchanged or traded financial markets provide three major economic functions ie price discovery, liquidity and reduction of transaction costs.
The financial system functions to facilitate the flow of funds between deficit & surplus units through the interaction of financial institutions, instruments & markets surplus units have an excess of current funds while deficit units have a shortage of current funds. This book is designed to help you internalize the basics of money and banking there is a little math, there is a little math, some graphs, and some sophisticated vocabulary, but nothing terribly difficult, if you put your brain. Our financial system operated with large gaps in meaningful oversight, and without market innovation also creates financial instruments and markets that fall. The financial system of any economy consists of financial markets, financial intermediation and financial instruments or financial products the economic development of any nation is.