financial system and types of financial assets

financial markets

BANK FINANCIAL INSTITUTION

bfi

THEY OFFER EVERYTHING ABOUT MONEY

UNIVERSAL BANK

FOCUSED ON SAVINGS OF THE FAMILY

THRIFT BANK

AGRICULTURE, FARMERS

rural bank

FOLLOWS THEIR RELIGION POLICIES

islamic bank

focused on members transactions

COOPERATIVE BANK

BANK THAT DON'T OFFER "INVESTMENT HOUSE"

COMMERCIAL BANK

NBFI

non banking financial institutions

EX. SAMAHAN NG TRICYCLES

coops

NON BANK THAT COLLECT INVESTORS

venture capital

PARTS OF FINANCIAL SYSTEM

Financial Institution , Financial markets, , Demanders of funds, suppliers of funds, private placement

KNOWS WHERE THE MONEY GO

DIRECT

EXAMPLE OF SECURITIES

CERTIFICATES, ACCOUNT, CODE

WGAT ARE THE INTERMIDIARIES ON FINANCIAL SYSTEM

FIN INSTI, FIN MAR, PRIVATE PLACEMENT

SHORT TERM INVESTMENT (T-BILLS, GOV BONDS, MUTUAL FUNDS)

MONEY MARKET

LONG TERM INVESTMENTS

CAPITAL MARKET

an item of economic, commercial, or exchange value that has a material existence. (TANGIBLE)

PHYSICAL ASSTES

is one of the most common physical assets

LAND

an investment when bought to rent out or sell later at a higher value.

HOUSE

made of valuable metals and gemstones can increase in value due to the rarity or craftsmanship involved.

JEWELRY

one of the most famous and valuable diamonds in the world

HOPE DIAMOND`

refers to metals like gold, silver, and platinum, which are used both as investments and as hedges against inflation

Precious METALS

are rare, old items that have historical value, which can appreciate over time.

Antiques

PAINTING, OLD COINS AND BILLS, COLLECTION

ANTIUQUES EXAMPLES

Can be significant physical asset that generates income and appreciates in value.

BUSINESS

is a liquid asset that gets its value from a contractual right or ownership claim.

FINANCIAL ASSTE

The _ _involves short-term, highly liquid debt instruments that mature within one year. These are considered low-risk investments

MONEY MARKET

Short-term government debt securities issued by a country's treasury, typically with maturities ranging from a few days to one year

MONEY MARKET

Short-term government debt securities issued by a country's treasury, typically with maturities ranging from a few days to one year

T-BILLS

A savings certificate issued by banks or financial institutions with a fixed maturity date and interest rate.

CERT OF DEP (COD)

Unsecured, short-term promissory notes issued by corporations to finance short-term liabilities like payroll or inventory purchases. (270 DAYS)

COMMERCIAL PAPERS

A short-term debt instrument guaranteed by a bank, typically used in international trade transac

BANKERS ACCEPTANCE

The bond market is a segment of the financial market where participants buy and sell debt securities, primarily in the form of bonds

Bond Market

Long-term debt securities issued by national governments to finance government spending. They typically have maturities longer

. Treasury/Government Bonds

Debt securities issued by local governments, municipalities, or their agencies to finance public projects like schools, highways, or utilities

Municipal Bonds

Debt securities issued by corporations to raise capital for various purposes such as expanding operations, financing mergers, or funding research and development

Corporate Bond

Bonds that allow the issuer to redeem the bond before its maturity date,

Callable Bonds

Bonds that can be converted into a predetermined number of shares of the issuing company's stock.

Convertible Bonds

Bonds secured by real estate or physical assets, meaning that in the event of default, bondholders have a claim on the underlying property

Mortgage Bonds

where long-term securities, such as stocks and bonds, are bought and sold

Capital/Equity Market

ownership in a company and gives shareholders voting rights, HOLDERS I. may receive dividends, but these are not guaranteed and may fluctuate depending on the company's performance.

Common Stock

represents a class of ownership in a company with fixed dividend payments and a higher claim on assets than common stock in the event of liquidation., DONT HAVE VOTING RIGHTS

Preferred Stock