ACCT 201 Lecture Notes - Lecture 2: Federal Deposit Insurance Corporation, National Credit Union Administration, Federal Savings Bank
Document Summary
Commercial bank: savings and loans, credit unions. Private placement of securities (public) capital markets: public offering of securities. Primary market (for securities: secondary market (for securities) Market makers: bonds, common stock, preferred stock. The (cid:498)money market(cid:499: demanders vs. suppliers of short-term funds, marketable securities. Negotiable certificates of deposit: eurocurrency market. Readings & videos: (1) please read (cid:498)financial )nstitutions(cid:499) in section (cid:884). (cid:883), (cid:498)financial )nstitutions and markets(cid:499) Financial institution- accepts savings and gives out loans. Financial market is where suppliers and demanders can make transactions of various types of funds. Private placement is the final way for firms to obtain funds, but it is rather unstructured. Financial institutions are intermediaries that channel the savings of users into loans or investments. Pay users interest or charge a service fee, lending the money out or investing into stocks. Individuals are the net suppliers of financial institutions- they save more than they borrow.
