Академический Документы
Профессиональный Документы
Культура Документы
and
Financial Markets
• Principle 2:
There is a Risk-Return Tradeoff
• Principle 4:
Market Prices Reflect Information
• Principle 5:
Individual Respond to Incentives
• These include:
– financial services corporations;
– insurance companies;
– investment banks;
– investment companies, including
mutual funds, hedge funds, and private
equity firms.
Securitization Process
1. Homebuyers borrow money by taking out a
mortgage loan
2. Lender sells the mortgage to another firm
or financial institution.
3. That financial institution pools together and
creates a portfolio of mortgages. The
purchase of that portfolio is financed
through sale of MBS.
• Accredited investor
• Bond
• Capital market
• Commercial bank
• Common stock
• Coupon rate
• Credit default swap
• Debt securities
• Defined benefit plan
• Defined contribution plan
• Equity securities
• Exchange-traded fund (ETF)
• Face value or par value
• Financial intermediaries
• Hedge fund
• Investment bank
• Investment company
• Leveraged buyout firm
• Load fund
• Maturity
• Money market
• Mutual fund
• Net asset value (NAV)
• Note
• No-load fund
• Organized security exchanges
• Over-the-counter market
• Preferred stock
• Primary market
• Private equity firm
• Proprietary trading
• Secondary market
• Security
• Venture capital firm