Introducción a

las Finanzas
Finanzas Empresariales
Roberto Del Barco Gamarra
WHAT IS FINANCE?
What Is Finance?
• Finance is the study of how and under what terms savings
(money) are allocated between lenders and borrowers.
• Finance is distinct from economics in that it addresses not only how
resources are allocated but also under what terms and through what
channels

• Financial contracts or securities occur whenever funds are

transferred from issuer to buyer.

CHAPTER 1 -
1-3 An Introduction
to Finance
Real Versus Financial Assets
• Real assets are tangible things owned by persons and businesses
• Residential structures and property
• Major appliances and automobiles
• Office towers, factories, mines
• Machinery and equipment

• Financial assets are what one individual has lent to another

• Consumer credit
• Loans
• Mortgages

CHAPTER 1 -
1-4 An Introduction
to Finance
Assets and Liabilities of Households, 2005
Table 1-2 Assets and Liabilities of Households, 2005

Assets $ Billion Liabilities $ Billion

Houses 1,086 Consumer credit 260
Consumer Durables 435 Loans 131
Land 827 Mortgages 588
Real Assets 2,348 Total Liabilities 979
Deposits 683
Debt 114
Pensions and insurance 1,200
Shares 1,254
Foreign and other 72
Financial Assets 3323
Total Assets 5,671

So urce: Statistics Canada. Natio nal B alance Sheet A cco unts, Quarterly Estimates, Fo urth
Quarter 2005. Ottawa: M inister o f Industry, 2006 (Catalo gue No . 13-214-XIE).

CHAPTER 1 -
1-5 An Introduction
to Finance
The Financial System
Overview

• The household is the primary provider of funds to

businesses and government.
• Households must accumulate financial resources throughout their working
life times to have enough savings (pension) to live on in their retirement
years

• Financial intermediaries transform the nature of the

securities they issue and invest in
• Banks, trust companies, credit unions, insurance firms, mutual funds

• Market intermediaries simply help make markets work

• Investment dealers
• Brokers
CHAPTER 1 -
1-6 An Introduction
to Finance
The Financial System

CHAPTER 1 -
An Introduction
to Finance
 Function of Financial Manager
1a.Raising funds
2.Investments

Financial Financial
Operations 1b.Obligations
Manager (stocks, debt Markets
(plant,
equipment, securities) (investors)
3.Cash from
projects) operational
activities
4.Reinvesting 5.Dividends or
interest payments
 Financial decisions
• Financing decision – where is money going to come from
• Investment decision – how much to invest and in what assets

Operations Financial markets

Financial
Investments

Financing
Manager
 Financial decisions
Capital structure and cost of capital

Operations
Financial
markets
Financial
Investments

Financing
Manager
The goal of financial management
Maximizing shareholder’s wealth (maximizar la riqueza de los accionistas)

Maximizing stock prices (maximizar el

precio de las acciones)
Objectives for financial manager

• Maximizing earnings and earnings growth

• Maximizing return on investments and return
on equity
Financial markets
• The main goal of financial markets:

Take savings from those who do not wish to consume

(savings surplus units) and to channel them to those
who wish to invest more than they have presently
(saving deficit units)
Financial markets and financial system
Financial system
Return on
Return on
investments
Financial investments
markets
money money

Saving surplus Saving deficit

units (savers) units (investors)

money money
Ф Financial
intermediaries
Return on Return on
investments investments
Financing decisions
Financing
decisions

Internal corporate External sources

financing of funds

Direct financing Indirect financing

Retained earnings (financial markets (financial
Instruments) Intermediaries)

Stocks Loans

Debt instruments
(bonds, CPs etc.)
Financial markets

Financial markets

Organized exchanges
Primary markets Money market
Over-the-counter
Secondary markets Capital market
Types of financial instruments
Type of issuer (emisor)

Government, government
agencies

States (regions,
provinces), municipalities

Corporations

Financial
institutions

Others
Types of financial instruments

Maturity

Short-term instruments

Long-term instruments
Types of financial instruments
Type of yield

Dividend bearing
(stocks)

Discount debt
Instruments
(treasury bills)

Interest income instruments (bonds)

Types of financial instruments
By level of risk

Risk-free instruments (treasury bills)

Low-risky securities (treasury notes and bonds),

investment grade corporate bonds,
blue-chip stocks)

High-risky securities (junk bonds,

stocks), derivatives
 The Financial System
Channels of Intermediation

• Funds can be channeled from saver to borrower in three ways:

• Direct intermediation (direct transfer from saver to borrower – a non-market
transaction)
• Direct intermediation (a market-based transaction usually through a market
intermediary such as a broker)
• Indirect claims through a financial intermediary (where the financial intermediary
such as a bank offers deposit-taking services and ultimately lends those deposits
out as mortgages or loans)

CHAPTER 1 -
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to Finance
Channels of Intermediation
FIGURE 1-3

CHAPTER 1 -
1 - 22 An Introduction
to Finance
 The Financial System
Financial Intermediaries

• Banks and other deposit-taking institutions

• Insurance companies
• Pension Funds
• Mutual Funds

CHAPTER 1 -
1 - 23 An Introduction
to Finance
Financial Intermediaries
Bolivian Chartered Banks
• Banks take deposits from numerous depositors from across Bolivia
• The deposits are ‘pooled’ in the Bank
• The bank takes these pooled funds and lends them out to households and businesses in the
form of mortgages and loans
• The bank transforms the original nature of the savers (depositors) money:
• Deposits are usually small in amount…face little or no risk, and depositors expect to withdraw the
amount at any time
• Loans and mortgages on the other hand usually have the following characteristics:
• Large sums
• Borrowed for long periods of time
• Borrowed for risky purposes.

• Banks can perform this transformation function because they become experts at risk
assessment, financial contracting (pricing the risk) and monitoring the activities of borrowers.

1 - 24
 Financial Intermediaries
Insurance Companies

• Insurers sell policies and collect premiums from customers based on the pricing of
those policies given the probability of a claim and the size the policy and
administrative fees.
• They invest the premiums so that the accumulated value in the future will grow to
meet the anticipated claims of the policyholders.
• In this way, unsupportable risks (such as the death of wage earner or the burning
down of a business) are shared among a large number of policyholders through the
insurance company.
• Insurance allows households, business and government to engage in risky activities
without having to bear the entire risk of loss themselves.

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1 - 25 An Introduction
to Finance
Financial Intermediaries
Pension Plan Assets

• Individuals and employers make payments over the entire working life of
a person with those funds invested to grow over time.
• Ultimately, the accumulated value in the pension can be used by the
person in retirement.
• Pension plans accumulate considerable sums of money, and their
managers invest those funds with long-term investment time horizons in
diversified portfolios of investments. These investments are a major
source of capital, fuelling investment in research and development,
capital equipment, resource exploration and ultimately contributing in a
substantial way to growth in the economy.

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to Finance
 Financial Intermediaries
Mutual Fund Assets
• Mutual funds give small investors access to diversified,
professionally-managed portfolios of securities.
• Small investors often do not have the funds necessary to invest
directly into market-traded stocks and bonds.
• This is called denomination intermediation because the mutual
fund makes investments available in smaller, more affordable
amounts of money.
• Canadian indirect investment in the markets through managed
products such as mutual funds and segregated funds has grown
exponentially.

CHAPTER 1 -
1 - 27 An Introduction
to Finance
Financial Instruments
• There are two major categories of financial securities:
1. Debt Instruments
– Commercial paper
– Bankers’ acceptances
– Treasury bills
– Mortgage loans
– Bonds
– Debentures
2. Equity Instruments
– Common stock
– Preferred stock

CHAPTER 1 -
1 - 28 An Introduction
to Finance
Financial Instruments
Non-marketable
• Characteristics of non-marketable securities
• Cannot be traded between or among investors
• May be redeemable (a reverse transaction between
the borrower and the lender) - reembolsable
• Examples:
• Savings accounts
• Term Deposits
• Guaranteed Investment Certificates

CHAPTER 1 -
1 - 29 An Introduction
to Finance
Financial Instruments
Marketable
• Characteristics of Marketable securities
• Can be traded between or among investors after their original issue in public
markets and before they mature or expire

• Market Capitalization
• Is an important term in finance
• It is the total market value of a company
• It is found by multiplying the number of shares outstanding by the market
price per share.

CHAPTER 1 - An Introduction to Finance 1 - 30

Financial Instruments
Marketable
Markets can be categorized by the time to maturity:
• Money Market Securities (for short-term debt securities that are pure
discount notes)
• Bankers’ acceptances
• Commercial Paper
• Treasury Bills
• Capital Market Securities (for long-term debt or equity securities with maturities
greater than 1 year)
• Bonds
• Debentures
• Common Stock
• Preferred Stock

CHAPTER 1 -
1 - 31 An Introduction
to Finance
Financial Markets
• Primary Market
• Markets that involve the issue of new securities by the borrower in return for
cash from investors (Capital formation occurs)

• Secondary Market
• Markets that involve buyers and sellers of existing securities. Funds flow from
buyer to seller. Seller becomes the new owner of the security. (No capital
formation occurs)

CHAPTER 1 -
1 - 32 An Introduction
to Finance
 Financial Markets
Types of Secondary Markets
• Exchanges or Auction Markets (de intercambio o subasta)
• Secondary markets that involve a bidding process that takes place in specific location
• For example TSX, NYSE

• Dealer or Over-the-counter (OTC) Markets (mercados de venta libre)

• Secondary markets that do not have a physical location and consist of a network of dealers
who trade directly with one another.
• For example the bond market

CHAPTER 1 -
1 - 33 An Introduction
to Finance
 Financial Markets
Other Markets

• Third Market
• Trading of securities that are listed on organized exchanges in the Over-the-counter market

• Fourth Market
• Trading of securities directly between investors (usually between two large institutions)
without the involvement of brokers or dealers.
• Operates through the use of privately owned automated systems such as Instinet

CHAPTER 1 -
1 - 34 An Introduction
to Finance
 The Global Financial Community
• Represents an important source of funds for borrowers
• Provides investors with important alternatives as they seek to build
wealth through diversified portfolios

CHAPTER 1 -
1 - 35 An Introduction
to Finance
Conceptos
 CONCEPTO:
Sistema financiero
• Se encuentra constituido por el conjunto de agentes económicos:
• Instituciones financieras
• Intermediarios financieros
• Reguladores
• Mecanismos e instrumentos financieros que actúan en la intermediación de fondos

La principal intermediación que propicia el sistema financiero en la economía, en términos

agregados, es la VINCULACIÓN de los hogares con las empresas trasladando el ahorro de las
familias a las firmas.
 CONCEPTO:
El MERCADO FINANCIERO
• Es donde se realizan las transferencias entre los agentes
excedentarios de fondos (ahorro) y que están dispuestos a invertirlos y
los agentes económicos que carecen de fondos para llevar adelante
proyectos o actividades productivas y están dispuestos a pagar una
remuneración por ello (precio)
 ¿Por que se ahorra?
• Para diferir el consumo del presente al futuro, porque el beneficio de
consumir ahora no es tan grande.

• Por precaución, prever para el futuro ya que no se sabe que va ocurrir.

• Porque existe un excedente que ya no puede ser gastado (consumido).

 La Intermediación financiera permite,
• Reducir los problemas de búsqueda de contraparte, facilitando la
transferencia de recursos entre agentes económicos.
• Gestionar los mecanismos de pago, registrando las operaciones en
montos, plazos y condiciones.
• Tener acceso a información ágilmente.
• Reducir problemas de economía de escala.
• Coadyuvar con los problemas de administración del riesgo.
 Tipos de intermediación
Indirecta
• Los intermediarios captan el ahorro fragmentado de los agentes
económicos y lo asignan directamente (vía préstamos) a las
empresas, instituciones o público que lo requieren, asumiendo el
riesgo relacionado

• Bancos
• Fondos Financieros
• Cooperativas de ahorro y préstamo (cuasi-bancos)
 Tipos de intermediación (2)
Directa
• Los ofertantes y demandantes de recursos se contactan
directamente entre sí (o través de intermediarios) asumiendo los
oferentes el riesgo relacionado

• Agentes de Bolsa
• Fondos de Inversión
• Fondos de pensiones
• Compañías de seguros
 Clasificación de los mercados financieros
1. Por el plazo de vigencia de activos
Mercado monetario o de dinero
• Se negocian activos financieros con un plazo de vigencia inferior o igual a un año
• Son activos de bajo riesgo y alta liquidez
• Demandantes de recursos: los tesoros, bancos centrales, instituciones financieras
privadas, mercado interbancario, empresas y familias
• Ofertantes de recursos: instituciones financieras privadas, familias, empresas, fondos de
inversión.
• Reguladores: Superintendencias o Autoridades de Bancos y Valores, Bancos centrales,
bolsa de valores.
Clasificación de los mercados financieros(2)
Mercado monetario o de dinero
Emisores: Activos Financieros:
• Tesoro público • Letras
• Banco Central • Certificados de depósitos
• Instituciones Financieras • DPF’s
• Empresas • Cajas de ahorro
• Cuentas corrientes
 Clasificación de los mercados financieros
Mercado de capitales
• Se negocian activos financieros con un plazo de vigencia superior a un año
• Son activos de mayor riesgo y menor liquidez
• Demandantes de recursos: los tesoros, bancos centrales, instituciones
financieras privadas, mercado interbancario, empresas y familias
• Ofertantes de recursos: instituciones financieras privadas, familias, empresas,
fondos de inversión.
• Reguladores: Superintendencias o Autoridades de Bancos y Valores, Bancos
centrales, bolsa de valores.
Clasificación de los mercados financieros(2)
Mercado de capitales

Emisores: Activos Financieros:

• Tesoro público • Bonos
• Instituciones Financieras • DPF’s
• Empresas • Acciones (preferentes u ordinarias)
• Cédulas hipotecarias
 ¿Como funciona el
sistema financiero boliviano?