Beruflich Dokumente
Kultur Dokumente
Pandey
Marketing
◦ Budgets, marketing research, marketing financial
products
Accounting
◦ Dual accounting and finance function, preparation of
financial statements
Management
◦ Strategic thinking, job performance and profitability
Personal finance
◦ Budgeting, retirement planning, college planning, day-
to-day cash flow issues
Know the basic types of financial
management decisions and the role of the
financial manager
Know the goal of financial management
Know the financial implications of the
Seeker of Supplier
funds of fund
Flow of financial
services
Saving Function
Liquidity
Payment Function
Risk Function
Policy Function
Money Market
Call Money Market
Treasury Bills
Commercial Papers
Certificates of deposit
Money Market Mutual Funds
Capital Market
• Primary Market
• Secondary Market
Fund Raising
Fund Allocation
Profit Planning
Profit Maximization versus Wealth
Maximization
Expected Return
Risk Premium
Risk
International capital Market
ADR GDR
Yankee Bonds Euro/Dollar IDR/EDR
Samurai Bonds Euro/Yen
Bulldog Bonds Euro/ Ponds
Euro Bonds: Issued outside the country in whose currency it is
denominated.
◦ Fixed rate Bonds: straight debt bonds are fixed interest bearing
securities which are redeemable at face value.
◦ Floating rate Notes: a bond issue with a maturity period varying from
5-7 years having varying coupon rates either pegged to another security
or refixed at periodic interval
Foreign Bonds:
◦ Yankee Bonds: These are US dollar denominated issuers by foreign
borrowers in the US Bond Market
◦ Samurai Bonds: These are the bonds issued by non Japanese
borrowers in the domestic Japanese markets
◦ Bulldog Bonds: These are the sterling denominated foreign bonds
which are raised in the UK domestic Market
◦ Shibosai Bonds: These are the privately placed bonds issued in the
Japanese market
ADR: An American Depositary Receipt (or ADR) represents the ownership in the
shares of a foreign company trading on US financial markets. The stock of many non-
US companies trades on US exchanges through the use of ADRs. ADRs enable US
investors to buy shares in foreign companies without undertaking cross-border
transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be
traded like the shares of US-based companies.
GDR: A bank certificate issued in more than one country for shares in a
foreign company. The shares are held by a foreign branch of an international bank.
The shares trade as domestic shares, but are offered for sale globally through the
various bank branches
Euro Depositary Receipt: As with other depositary receipts, the EDR is a
certificate representing ownership of the issuer's underlying shares. The EDR is
denominated and quoted in euros. EDRs make it easier for individuals to invest in
foreign companies that are not traded locally.
IDR: A negotiable, bank-issued certificate representing ownership of stock securities
by an investor outside the country of origin.
Foreign market is the market where the financial
paper denominated in the one currency is always
traded against financial paper denominated in
some other currency
Features:
◦Telephonic market
◦Geographic location
◦Exchange Rate
Exporter
Importer
Hedgers
Speculators
Arbitrators
The asset which derives its value from
another underlying asset
Products/ Contract traded on the exchange
known as exchange traded derivative