Main Function Of Financial System And market Flashcards
Main Functions of Financial system(6)
1) to borrow
2) to save
3) raise equity capital
4) manage Risk
5) exchange assets for intermediate or
Future delivery
6) trade on information
What the main functions of the financial system facilitated ?
1) achievement of the 6 purposes
2) determine RATES
3) Allocation of Capital to its best use
SPDR uses what type vehicle investment?
Pooled Investments
Underwritten issuing
Investment bank buy all the remaining shares
Private Placement
Listed company Selling shares to a specific public
What is Shelf registration
Company’s can do multiple Public offerings using the same registration
Pre registering on SEC
What are the rules of screen price negotiations?
1- price priority
2- display precedence (hidden ordens will go last)
Economic interest rate equilibrium is most likely determined…
Supply and demand of money
What is the order driven market
Displays all of the avaible bids and asks
What is Quote-Driven market
A market wich is foucused on market makers prices
What can traders do on Market Ask Price
Buy
What traders can do on the Bid market
Sell
Caracterics of Forward contracts
Not liquid
Not padronized
No inicial outlay of cash
Característics Future contracts
Padronazied
More liquid
Daily adjustment
Needs initial outlay of cash
What is a dark pool
A Vanue which is not too regulated
