FINANCIAL INSTITUTIONS
* Commercial Banks - Universal Banking
* Electronic Banking:
- An increasing amount of funds move through
... [Show More] electronic fund transfer
- Millions of businesses and consumers now pay bills and receive payments electronically
- Most employees directly deposit employees paycheck
- SSS, BIR and other government payments are made electronically
- Automated Teller Machines (ATM)
* Saving Banks and Credit Unions\
- Offer variety of consumer services
- 85% of their loans are real estate loans
- Credit unions are cooperative financial institutions that are owned by depositors/members
* Non-Depository Institutions
- Insurance Companies
- Pension Funds
- Finance Companies
- Lending Companies
Financial Market
Financial markets play a vital role in facilitating the smooth operation by allocating resources and creating liquidity for business and entrepreneurs. The markets made it easy for the buyers and the sellers to trade their financial holdings. Financial market create securities products that provide a return for those who have excess funds (investors and lenders) and make these funds available to those who need additional money (borrowers)
Figure 2 - Elements of Financial Market
Types of Financial Markets
* Stock Market - Perhaps the most ubiquitous of financial markets are stock markets.These are venues where companies list their shares and they are bought and sold by traders and investors. Stock market or Equities markets are used by companies to raise capital via an initial public offering (IPO). with shares subsequently traded among various buyers and seller in what is known as Secondary Market. Stocks maybe traded on listed exchange like the Philippine Stock Exchange.or traded Over the Counter (OTC). Most trading in stock is done via regulated exchange
Typical participants in a stock market include (both retail and institutional) investors and traders, as well as market makers and specialists who maintain liquidity and provide two sided markets. Brokers are third parties that facilitate the trades between buyers and sellers but who do not take an actual position in a stock. [Show Less]