RSM230H1 Chapter Notes - Chapter 1: Instinet, Third Market, Nasdaq
Document Summary
The study of how and under what term savings (money) are allocated between lenders and borrowers. It examines under what terms and through what channels allocations are made of money. Financial securities: whenever funds are transferred, a financial contract, this is what the financial contacts are called. Net worth the difference between what is owned and what is owed. Types of assets: real assets represents the tangible things that compose personal and business assets. The balance sheet shows all real assets according to six major classifications. Houses, consumer durables, land: financial assets a claim that one individual has on another. How much money you owe to other people, debt. The basic idea behind this is to collect financial data on major agents in the financial system and then track the borrowing and lending between these agents. Basi(cid:272) fi(cid:374)a(cid:374)(cid:272)ial flo(cid:449) is (cid:862)i(cid:374)ter(cid:373)ediated(cid:863) through the fi(cid:374)a(cid:374)(cid:272)ial s(cid:455)ste(cid:373) The households, take and give money to financial systems.
