Financial Markets and Institutions - Lecture 01

[@johndurrant9262]

Notes: Financial Markets & Institutions Lecture 01: Economics is the study of scarcity Financial System is comprised of: 1. Financial Instruments - What 2. Financial Markets - Where 3. Financial Institutions - Who Trade means to buy and sell Financial Instruments A financial CLAIM is a claim on an entity's assets and future earnings (stock, bonds etc.) Financial Instruments are traded on financial markets Financial Institutions are Financial intermediaries (Intermediation - channeling funds) Intermediation example: Channelling funds from savers (with surplus funds) to users (with a shortage of funds) Financial Institutions ISSUE and INVEST in Financial Instruments. Note: In Finance we use the term FUNDS. Funds could be money but doesn't have to be. Funds = Financial resource Markets - 2 kinds - Primary Markets and Secondary Markets: Primary: Where new funds are RAISED (transferred from savers to users). E.g., A company issues bonds or stocks. Secondary: Where funds are traded. The investor sells to another investor. The function of secondary markets is to provide liquidity - to sell assets quickly and for the full price. Also provides information (price, trends). If an Instrument is not liquid we say it is illiquid Money Markets and Capital Markets: Money Markets: Financial market where money market instruments are traded - money market is a short-term Financial Instrument Capital Markets: Financial market for long-term instruments - maturity of more than one year. Maturity is when the financial instrument dies - (e.g. 5-year bond); Capital markets can be Debt Market and Equity Market. More Terms: Equity is a residual claim on assets - Residual is the claim after all other obligations satisfied (taxes, salaries, and all creditors have been paid) Providers of Debt are called creditors. Creditors buy Debt Financial Instruments. Providers of Equity are called Investors. Investors are buyers of equity. In Finance short-term has a specific definition - means 1 year or less In finance the term 'to Mature' means 'to become payable' - The bond becomes PAYABLE by the ISSUER. Profit is income that results from economic activity. In finance there are no profits - there is only return - the income from Financial Instruments (Buy, Hold, Sell, etc.) An Asset is a resource: Properties of an asset: 1) Must have Value; 2) you can Own it; 3) you can Control it and Use it; 4) and an Asset generates revenue (income)

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[@kmpetrov]

I am sorry but at the moment I do not provide any notes. You need to learn to use the original textbook instead. Or just read any other textbook on the topic.

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[@kmpetrov]

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[@saraahmad5236]

Economics suffers badly from the fact that it is a science that lacks the protection from the prestige gained from aging, as is the case with physics which results from repeating experimentation every time which emphises the foundations of that science in different, varied, and surprising ways. And all reinforce that science. The author Walid Ahmed Kamal Al-Hababi, in his book "The Economic Risk Theory" (the Islamic Macroeconomic System), deals with achieving maximum benefit, detailing the new economic system, which is called the "risk" system in which wealth is distributed to everyone, as it is a stable and more efficient system than the system of free market. In his book "The Theory of Economic Risk" (The Islamic Macroeconomic System), the author believes that the basic idea of ​​this book is to clarify the idea of ​​how to use the principle of time preference in imposing taxes, in order to motivate everyone to invest and raise productivity through tax. He also touched on the state's duties regarding its implementation and the extent of its participation in the market accurately. The author spoke of the zakat banks as the state budget, while the state budget remains the most controversial point among policy makers in countries. At the same time, the writer believes that while economic writings are scarce from a total point of view, there is no writer who spoke about a holistic Islamic economy as a previous system; So this is the only writing, up to the moment. You cannot change a system by fighting the existing truth, as Muslim economists always do, but to change something, you must create a model that makes the current system an outdated system. furthermore If we know that this system achieves the highest rate of spending in a country without need for other economic resources - without taxes or anything else - thus we can see that we are facing unique writings. Whereas, it lays out clear features for the Islamic economy that distinguish it completely from the socialist and capitalist economies, and not a fabrication to be similar to either of them. And he affirms that with this system, other systems will not be able to catch up with our economic progress, no matter what efforts are made, except to implement it. On the other hand, he believes that we will not be able to catch up with the West economically with the current systems, no matter what we try. Finally, the author asserts, that economics is the only thing that clarifies the purpose of Islamic customs and rituals apart from their devotional meaning in human life. So that it can be proven without doubt that it is indispensable for a person to perform it such as Hajj, Zakat, prayer ... etc. He also confirms that all of this is found in the book (The Theory of Economic Risk) in this book issued by the House of “Yemeni Books” for printing, publishing and distribution within 305 pages and distributed in three main chapters, that this Islamic macroeconomic system is; He is the one who will bring us the maximum benefit يعاني علمُ الاقتصادِ بشدةٍ من أنه العلمُ الذي يفتقدُ إلى الحمايةِ التي تُؤمنها الهَيبة المكتسبة من تقادم العمر، كما هو الحال مع علمِ الفيزياءِ الناتج عن ترسيخ التجربة المتكررة في كلِ مرة للأسس بطرقٍ مختلفةٍ، ومتنوعةٍ، و مدهشةٍ. وجميعها تعززُ مكانة ذلك العلمِ. وتناول المؤلف وليد أحمد كمال الحبابي، في كتابه" نظرية المخاطرة الاقتصادية" (النظام الاقتصادي الكلي الإسلامي) تحقيق المنفعة القصوى، إيراد تفاصيل النظام الاقتصادي الجديد ، والذي يسمى نظام "المخاطرة" والذي تتوزع فيه الثروة على الجميع ، باعتباره نظاماً مستقراً أكثر كفاءة من نظام السوق الحر. ويرى المؤلف في كتابه" نظرية المخاطرة الاقتصادية" (النظام الاقتصادي الكلي الإسلامي) تحقيق المنفعة القصوى، أن الفكرة الأساسية لهذا الكتاب تكمنْ في توضيح فكرة كيفية استخدام مبدأ التفضيل الزمني في فرض الضريبة، وذلك لتحفيز الجميع على الاستثمار ورفع الانتاجية من خلال الضريبة. كما تطرق الى واجبات الدولة بخصوص تطبيقه ومدى اشتراكها في الأسواق بدقه . وتحدث المؤلف عن أن مصارف الزكاة تعتبر هي موازنة الدولة، فيما تظل موازنة الدولة هي النقطة الاكثر جدلا بين صانعي السياسات في البلدان. وفي الوقت نفسه يرى الكاتب أنه فيما تندر الكتاباتُ الاقتصاديةِ من ناحيةٍ كلية، ولا يوجد كاتبٌ تحدث عن اقتصادٍ إسلامي كلي كنظام سابقًا؛ وبالتالي فهذه هي الكتابة الوحيدة، حتى اللحظة. ويضيف لا يمكنك تغيير نظام بمحاربة الحقيقة القائمة، كما يفعل ذلك الاقتصاديون المسلمون دوما ، ولكن لتغيير شيءٍ، يجب عليك وضع نموذج يجعل النظام الحالي نظام عفا عليه الزمان؛ فإذا علمنا أن هذا النظام يحقق أعلا معدل إنفاق في دولة بلا موارد اقتصادية_ دون اللجوء إلى ضرائبٍ، أو غيرها_ فحينها يمكن أن نرى أننا أمام كتاباتٍ فريدةٍ من نوعها؛ حيثُ أنها تضع للاقتصاد الإسلامي ملامحًا واضحةً تميزهُ تمامًا عن الاقتصادين الاشتراكين و الرأسمالين، وليس تلفيقًا ليشابه أحدهما. ويؤكد أنه بهذا النظام لنْ تتمكن الأنظمةُ الأخرى من اللحاقِ بتقدمنا الاقتصادي مهما بذلت من جهود سوى تطبيقه. وعلى الجانب الآخر يرى أننا لن نتمكن نحنُ من اللحاق بركب الغرب اقتصاديًا بالنظم الحالية مهما حاولنا. وأخيرًا يجزم المؤلف، إن الاقتصاد هو الشيء الوحيد الذي يوضح الغرض من العاداتِ والعباداتِ الإسلامية بعيدًا عن معناها التعبدي في حياة الإنسان؛ بحيث يثبت بما لا يدع للشكِ أنه لاغنى للإنسان عن القيام بها من حج، وزكاة، وصلاة... الخ. كما يؤكد أن كل ذلك نجدهُ في كتاب ( نظريةُ المخاطرةِ الاقتصاديةِ) في هذا الكتاب الصادر عن دار "الكتب اليمنية" للطباعة والنشر والتوزيع ضمن 305 صفحة وموزع على ثلاثة أبواب رئيسية ، أن هذا النظام الاقتصادي الكلي الإسلامي؛ هو الذي سيحققُ لنا المنفعة القصوى.. .. ,,لتنزيل نسخة مجانية من الكتاب www.mediafire.com/file/tvpyra7ojgvocbc/الاقتصاد+الكلي+الاسلامي.pdf/file لمشاهدة لقاء مع المؤلف حول موضوع الكتاب يرجى زيارة الرابط التالي kzbin.info/www/bejne/fZ-piJp6od-KqpI ارجوا ان يتم وضعه كمادة تدرس في المنهج الدراسي لطلبة الاقتصاد في الفصل القادم وشكرا.. . . .. . .. And thanks alot ......

[@abdirahmanhanad7472]

Very well explained i understand 100% thank you prof

[@josephlemarlenilemarleni4219]

The best prof ever

[@abdullathabithemed9377]

I wish I could give more than one like

[@srinuramasatyam6155]

Dear Professor Components of the Financial system can Also be Included the Financial Services- Which will answer the Question How?

[@borntobeaqueens8341]

Try it at 1.5×

[@kmpetrov]

Yes, if the speed is too low, try first at 1.25x and then at 1.5x.

[@abdulrahmanalzahrani996]

Thank you sir ❤

[@RizkiAnjani]

Thank you Sir.

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[@kmpetrov]

Thank You.

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Optimal lecture

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The prof is a teacher

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[@farychaudary486]

Hello, Professor, first of all i want to say thanks for making such a useful videos and secondly i want to request that please upload a link of book here so we may have book while listening your lectures, it would be very helpful for all.

[@kmpetrov]

Uploading textbooks would violate copyright, so I am not legally allowed to do that, but you could search on Google and find the textbook.

[@freddeal4608]

hello Fary, can you please share with me the link of that textbook if you have found it? if yes you can send to this email [e-mail]

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[@kmpetrov]

Thank you.

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Using diagram, illustrate how a financial system works

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Hats off sir.......

[@kmpetrov]

Thank You.

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very lucid i mean the presentation is very easily understandable. thank u sir

[@kmpetrov]

Thank You.

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Thank you sir

[@prashantgarg9570]

Hello Professor, I want to know who is the audience to this course?

[@kmpetrov]

Students in a developing country with little (or no) finance background. Some have not even had Financial Management.

[@_Tedros]

Thanks dear!

[@zoonkauj999]

if the financial institution is weak, what to do?

[@kmpetrov]

replace incompetent management or simply let it die.

[@gyanlamsal]

Thank you