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BUSINESS ECONOMICs PAPER NO.: 9, FINANCIAL MARKETS AND INSTITUTIONS

MODULE NO. : 17, FINANCIAL MARKETS AND ECONOMIC
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 Weblinks
 http://apps.eui.eu/Personal/Carletti/Handbook_ACQV_25March2012.pdf
 http://www.people.hbs.edu/lalfaro/fdipaper25.pdf
 http://faculty.haas.berkeley.edu/ross_levine/papers/2000_JME_Fin%20Int%20Growth%20Ca
usality.pdf
 http://web.stanford.edu/group/siepr/cgi-
bin/siepr/?q=system/files/shared/pubs/papers/pdf/credpr145.pdf
 http://www.indianmba.com/occasional_papers/op125/op125.html
 http://www.investopedia.com/articles/03/073003.asp
 service/indian_financial_markets_2020_(fv).pdf
 http://www.nasdaq.com/investing/glossary

Suggested Readings

 Sharpe, William F, Jeffery V Bailey, and Gordon J Alexander. Cram101 Textbook Outlines To
Accompany: Fundamentals Of Investments, Alexander And Sharpe And Bailey, 3Rd Edition.
[Moorpark, CA]: Academic Internet Publishers, 2007. Print.

BUSINESS ECONOMICs PAPER NO.: 9, FINANCIAL MARKETS AND INSTITUTIONS

MODULE NO. : 17, FINANCIAL MARKETS AND ECONOMIC
DEVELOPMENT
  Moloney, Niamh, Eilís Ferran, and Jennifer Payne. The Oxford Handbook Of Financial

Regulation. Print.

 Peter Enderwick, Understanding Emerging Markets: China and India

Value Additions
Glossary

A
Auction markets - Markets in which the prevailing price is determined through the free interaction of
prospective buyers and sellers, as on the floor of the stock exchange.

B
Baby Bond- A bond with a par value of less than $1000.
Bad debt- A debt that is written off and deemed uncollectible

C
Capital Asset- A long-term asset, such as land or a building, not purchased or sold in the normal
course of business.

BUSINESS ECONOMICs PAPER NO.: 9, FINANCIAL MARKETS AND INSTITUTIONS

MODULE NO. : 17, FINANCIAL MARKETS AND ECONOMIC
DEVELOPMENT
 ETF - An exchange traded fund, is a marketable security that tracks an index, a commodity, bonds,
or a basket of assets like an index fund.

Hedge Fund- Hedge funds are alternative investments using pooled funds that may use a number of
different strategies in order to earn active return, or alpha, for their investors. Hedge funds may be
aggressively managed or make use of derivatives and leverage in both domestic and international
markets with the goal of generating high returns (either in an absolute sense or over a specified market
benchmark). Because hedge funds may have low correlations with a
traditional portfolio of stocks and bonds, allocating an exposure to hedge funds can be a
good diversifier.

Liquidity - In context of securities, a high level of trading activity, allowing buying and selling with
minimum price disturbance. Also, a market characterized by the ability to buy and sell with relative
ease.
In context of a corporation, the ability of the corporation to meet its short-term obligations. Measured
with liquidity ratios like current ratio, quick ratio, and cash ratio.
Antithesis of illiquidity.

Mutual Fund - An investment vehicle that is made up of a pool of funds collected from many
investors for the purpose of investing in securities such as stocks, bonds, money market instruments
and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and
attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.

Pension Fund'

A fund established by an employer to facilitate and organize the investment of employees' retirement
funds contributed by the employer and employees. The pension fund is a common asset pool meant to
generate stable growth over the long term, and provide pensions for employees when they reach the
end of their working years and commence retirement.

BUSINESS ECONOMICs PAPER NO.: 9, FINANCIAL MARKETS AND INSTITUTIONS

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 Fama – French Model

Image Description

In asset pricing and portfolio management the Fama–French

three-factor model is a model designed by Eugene
Fama and Kenneth French to describe stock returns. Fama and
French were professors at the University of Chicago Booth School
of Business, where Fama still resides.

Did You Know?

Description Image
Fraud Wipes Out a Former U.S. President
Ulysses S. Grant, a renowned war hero and former
president, only wanted to help his son succeed in business,
but he ended up causing a financial panic. Grant's son,
Buck, had already failed at several businesses but was
determined to succeed on Wall Street. Buck formed a
partnership with Ferdinand Ward, an unscrupulous man
who was only interested in the legitimacy gained from the
Grant name. They opened up a firm called Grant & Ward.
Ward immediately went around raising capital from
investors, falsely claiming that Ulysses S. Grant had
agreed to help them land fat government contracts. Ward
then used this cash to speculate on the market. Sadly,
Ward was not as gifted at speculating as he was at talking.
He lost heavily.

http://www.investopedia.com/articles/financial-theory/09/history-of-fraud.asp

BUSINESS ECONOMICs PAPER NO.: 9, FINANCIAL MARKETS AND INSTITUTIONS

MODULE NO. : 17, FINANCIAL MARKETS AND ECONOMIC
DEVELOPMENT