[MS&E 147] - Midterm Exam Guide - Everything you need to know! (27 pages long)

• School: Stanford University
• Department: MS&E - Mgmt Science & Engineering
• Course: MS&E 147
• Professor: Anat Admati

Document Summary

Announcements: sign up on piazza, seating chart, review session on friday, final exam march 21, 12:15-3:15, follow news about policy debates and financial system. Roles of corporations, financial institutions, financial markets, regulators, accountants, judges and legal system, lawmakers and politicians. What does financial system do: provide payment system. Money and credit facilitate exchange: provide loans to individuals and businesses. Connects those who need funds with those who can provide it. Connect companies and investors: shares risk. Diversification reduce risk: central to trade. Raises issue of governance and market discipline. Shadow banking practices revealed during global financial crisis. Huge and complex system of financial intermediation. Larger banks have since grown from the recent financial crisis - potential problem. Us banks hold most of the derivatives traded globally. Review sessions on friday same time and place as class time. Hsm derivatives, hedge, insurance, securities, otc, risk, yield. Money worth more to people and companies received earlier than later.