BUS1 170 Lecture Notes - Lecture 2: Securitization, Floorless Coaster, New York Stock Exchange
4 Apr 2016
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Document Summary
Within the financial markets, there are three principal sets of players that interact: borrowers: Individuals or businesses that need money to finance their purchases or investments: savers (mostly individuals) Those individuals (or firms) that have an excess cash: financial institutions (intermediaries) (ex. The financial institutions help bring borrowers and savers together. Figure 2. 1 financial market, institutions, and the circle of money. Money market- markets for short-term debt instruments (such as t-bills, commercial paper). Capital market- markets for long-term debt and equity instruments (such as common stock, preferred stock, corporate bond, and u. s. treasury bond). Financial intermediaries- institutions like commercial banks, finance companies, insurance companies, investment banks, and investment companies. They help bring together those who have money (savers) and those who need money (borrowers). Financial services corporations- are in the lending and financing business, but they are not commercial banks. Ge capital division provides commercial loans, financing programs, commercial insurance, equipment leasing, and other services in over 35 countries.
