investments chapter 1 powerpoint slide
DESCRIPTION
Investments powerpoint slideTRANSCRIPT
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
INVESTMENTS
KaneBodie Marcus
Fourth Edition
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
The Investment The Investment EnvironmentEnvironment
Chapter 1Chapter 1
1-11-1
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Essential nature of investment- Reduced current consumption
- Planned later consumption Real Assets
- Assets used to produce goods and services
Financial Assets- Claims on real assets
Investments & Financial AssetsInvestments & Financial Assets
1-21-2
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Role of Financial Assets and Role of Financial Assets and Markets in the EconomyMarkets in the Economy
Consumption Timing Allocation of Risk Separation of Ownership
1-31-3
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Financial System Clients Financial System Clients and Their Needsand Their Needs
Household Sector- Primary Need: Invest Funds
Business Sector- Primary Need: Raise Funds
Government Sector- Primary Need: Raise Funds
1-41-4
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
How the Financial System Meets How the Financial System Meets the Needs of Participantsthe Needs of Participants
Financial Intermediation Investment Banking Financial Innovation & Derivatives Responding to Regulation & Taxes
1-51-5
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Technology and Delivery of Service Computer advancements More complete and timely informationGlobalization Domestic firms compete in global markets Performance in regions depends on other regions Causes additional elements of risk
Investments and InnovationInvestments and Innovation
1-61-6
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
International and Global Markets Continue Developing Managing foreign exchange Diversification to improve
performance Instruments and vehicles continue to develop Information and analysis improves
Key Trends - GlobalizationKey Trends - Globalization
1-71-7
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Securitization & Credit Enhancement Offers opportunities for investors and
originators Changes in financial institutions and
regulation Improvement in information
capabilities Credit enhancement and its role
Key Trends - SecuritizationKey Trends - Securitization
1-81-8
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Repackaging Services of Financial Intermediaries
Bundling and unbundling of cash flowsSlicing and dicing of cash flowsExamples: strips, CMOs, dual
purpose funds, principal/interest splits
Key Trends - Key Trends - Financial EngineeringFinancial Engineering
1-91-9
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 1999
INVESTMENTSFourth Edition
Bodie Kane Marcus
Globalization continues and offers more opportunities
Securitization continues to develop Continued development of derivatives
and exotics Strong fundamental foundation is
critical Integration of investments &
corporate finance
The FutureThe Future
1-101-10