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I. Bankok. Overview and Introduction to Financial System. Overview and Introduction to Financial System. Introduction Core books Requirements Presentation , evaluation Overview on the whole financial system Historical background of money. Introduction.
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I. Bankok Overview and Introduction to Financial System
Overview and Introduction to Financial System • Introduction • Corebooks • Requirements • Presentation, evaluation • Overviewonthewholefinancialsystem • Historical background of money
Introduction • Course: IntroductiontoFinance • Department: Finance, EII.37 • Head of Department.: Dr. Vígvári, András • Secretary: Zsuzsanna Rébel EII.37 • Subject coordinator teacher: Andrea Vallyon, EII.39; vallyon.andrea@bgf.kkfk.hu, vallyon.andi@gmail.com • Consultations: at EII.39 on Thuesdays at 14.50-16.10 • Materials: Sharepoint Pénzügy Tanszék Angol tagozat Introduction to Finance file & • Coospace: Introduction to Finance file
Core books • Lawrence J. Gitman: Principles of Managerial Finance, Addison - Wesley 10th Edition http://wps.aw.com/aw_gitman_pmf_11 • Brealey and Myers: Principles of corporate Finance, West Publishing Company www.mhhe.com/business/finance • György Székely: The Essence of Money and Banking • A Handbook for Financial Managers. KJK-Kerszöv Kft. 2002. • Stephen Valdez: An Introduction to Global Financial Markets, Macmillan Press Ltd.1997
Requirements • To pass • Successful written exam ( 56 points from 100 points ) • 3 parts: • Test questions ( pre-exam: Dec. 14) • Calculations ( Oct. 26) • Essay (pre-exam: Dec. 14) • Presentations alternatively (10-15 minutes) in lecture (max. +15 points) – topicsarerelatedtolectures’ themes
Presentation • Alternative • Could be made in pairs • Max 15 minutes, one per each lecture • Hand-out + Power Point • Application for presentation: after the lecture • Topics ( see sharepoint) • Evaluation: presentation skills + hand-out materials
Overview and welcome! • What does financial system mean in the economy? • What is its task? – determinations • Who are the participants? • Direct and indirect flow of capital • What are the instruments in the financial markets? • Different markets and tasks • Investment decision from the private investor’s place
Financial system • Markets • Instruments • Rules, acts, regulations • Institutes • People • Techniques • Money and capital connections in the economy
Money supply and demand • Borrowers and lenders – supplyanddemand • Borrowers • Individuals • Companies • Government • Public corporations • Municipalities • Lenders: individuals (and companies) • DepositinCommercial bank • Shareholder • Investmentfunds, mutualfunds • pensionfunds • Insurrancecompanies
Intermediaries • Intermediaries (pénzügyi közvetítők)– financial institutes • Investment funds, • Mutual funds • Pension funds • Insurrance companies • Commercial banks
Financial instruments and financial markets • Securities • Freelybought and sold • Shares, preferenceshares • Corporate and govermentbonds, eurobonds • T-bills • certificate of deposit, commercialpapers Financial markets - primary - secondary
Investment decision • Market situation- the pyramid • Instruments as a legal claim • (two main types: bond and share) • Participants • ( bearish and bullish traders and speculators) • Institutions and regulations
Materialsforthetopic • Stephen Valdez: An Introduction to Global Financial Markets,Macmillan Press Ltd.1997 – chapter 1 • György Székely: The Essence of Money and Banking A Handbook for Financial Managers. KJK-Kerszöv Kft. 2002. • Lawrence J. Gitman: Principles of Managerial Finance, Addison - Wesley 10th Edition – see sharepoint: CH1:21-28old. • Sharepoint: Keown CH2 Financial markets and interest rates • Lecture 1. ppt.