CAPITAL MARKETS Flashcards
CMIP -
Capital Market Institute of the Philippines
GSEDs -
Government Securities Eligible Dealers
PDIC -
Philippine Deposit Insurance Corporation
MMMFs -
Money Market Mutual Funds
NAV -
Net Asset Value (NAV)
PSE -
Philippine Stock Exchange
MSE -
Manila Stock Exchange
MKSE -
Makati Stock Exchange
SRO -
Self-regulatory Organization
IPO -
Initial Public Offering
IMM -
Inetrnational Monetary Market
CME -
Chicago Mercantile Exchange
LIBOR -
London Interbank Offered Rate
CPI -
Consumer Price Index
ADAPS -
Automated Debt Auction Processing System
BIS -
Bridge Information Systems
Phisix -
Philippine Stock Index
NHMFC -
National Home Mortgage Finance Corporation
PSA -
Philippine Statistic Authority
PDCI -
Philippine Deposit Insurance Corporation
DBP -
Development Bank of the Philippines
PNB -
Philippine National Bank
GSIS -
Government Service Insurance System
SSS -
Social Security System
WOCCU -
World Council of Credit Union
PIFA -
The Philippine Investment Funds Association
CPPI -
The Chamber of Pawnbrokers of the Philippines, Inc.
was formed from the country’s two exchange stock exchanges.
PSE
- established on aug. 8 1927
MSE
- established on may 27, 1963
MKSE
- granted PSE a self-regulatory organization
JUNE 1998
- are structure through which funds flow.
FINANCIAL MARKETS
facilitate transactions in all types of financial claim
FINANCIAL MARKETS
entitles a credit to receive payment from a debtor in circumstances specified in a contract between them.
FINANCIAL CLAIM
have financial claims on banks where they hold their deposits.
DEPOSITOR
- are at the heart of financial system
FINANCIAL MARKET
entitles a credit to receive payment from a debtor in circumstances specified in a contract between them.
FINANCIAL CLAIM
have financial claims on banks where they hold their deposits.
DEPOSITOR -
- are at the heart of financial system
FINANCIAL MARKET -
CLASSIFICATION OF FINANCIAL MARKET
- Primary and Secondary Market
- Money or Capital Market
financial claims are initially sold by deficit units in primary markets.
PRIMARY MARKETS -
- users of funds raise funds, through new issues of financial instruments such as stocks and bonds.
PRIMARY MARKETS -
consist of underwriters, issuers, and instruments involved in buying and selling original or new issues of securities.
PRIMARY SECURITIES -
- also called merchant banks.
INVESTMENT BANKS
most primary market transactions are done.
INVESTMENT BANKS
guarantees the sale of the issues, but does not intend to hold the shares or bonds in his own account.
UNDERWRITER -
first-time issues for the public
INITIAL PUBLIC OFFERING -
INVESTMENT BANKS PROVIDE THE FOLLOWING SERVICES
- Provide funds in advance
- Give advice to issuing corporations
- Attract the initial public purchasers of the securities
- Act as a market analyst and advisor to the issuing company
- Absorb the risk and cost of creating a market for securities.
once financial instruments are issued in primary markets, they are then traded in secondary markets
SECONDARY MARKETS
form that the primary market sale can take
PRIVATE PLACEMENT -
- are likes used car markets
SECONDARY MARKETS
markets for currently outstanding securities. Previously bought and owned and now being resold.
SECONDARY SECURITIES -
shares held by the public.
OUTSTANDING SHARES/SECURITIES -
- exist for the purpose of marketability or easy selling/transfer of ownership.
SECONDARY MARKET
classified in the balance sheet as cash equivalents.
MARKETABLE SECURITIES -
- financial institutions organized usually as a corporation or a partnership.
SECURITIES DEALER
buy securities as their assets and resell them.
SECURITIES DEALER
- do nont buy their own account.
SECURITIES BROKERS
earnings are mere commissions.
SECURITIES BROKERS
- cover markets for short-term debt instruments, usually issued by companies with high credit standing.
MONEY MARKETS
find the purchashers for the securities that others wish to sell.
SECURITIES BROKERS
- generally have short maturities are highly liquid and have low default risk.
MONEY MARKET INSTRUMENTS
- are the core of money market transactions
DEALERS AND BROKERS
-banks with temporary cash surpluses led commercial banks to set up the money market as auction house for excess reserves.
INTERBANK CALL MARKET
- treated as deposit substitutes.
INTERBANK CALL LOANS
- are credits of one bank to another for a period not exceeding 4 days.
INTERBANK CALL LOANS
alternative ways of getting money from the public other than traditional bank deposits.
DEPOSIT SUBSTITUTES -
- IMM was opened and CME pioneering the trading of international financial derivatives most notably.
MAY 1972
payment process both in the primary and secondary markets for GS traded.
SETTLEMNT OF TRADES -
value based on 100 points per unit.
PRICE OF A GS -
market in which these Eurodollar deposits are traded.
EURODOLLAR MARKET -
- non-formally organized market are another mode of originating GS fro specific investors.
OVER-THE-COUNTER (OTC)
- the rate at which the central bank of country lends money to commercial banks in the event of any shortfall of funds.
REPO RATE
- known as the London Interbank Offered Rate.
EURODOLLAR FUNDS
are US-dollar-denominated CDs in foreign banks,
EURODOLLAR CERTIFICATES OF DEPOSITS -
the official registry of absolute ownership, legal, or beneficial titles.
RoSS -
the increment or interest on an investment in GS.
YIELD -
tender to buy a specified amount of GS by GSED in the primary auction of GS.
NON-COMPETITIVE BID -
tender to buy an amount of GS at an indicated yield rate per anumm.
COMPETITIVE BID -
method in which successful competitive bidders pay the price they have bid.
PRICE DISCRIMINATION OR ENGLISH AUCTION -