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Finman Ass

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35 views4 pages

Finman Ass

Uploaded by

JP
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INSTRUCTION:

Select 1 Publicly Listed Company in the internet, search for the company’s Annual Report, read and
understand the Corporate Governance Section of the company’s Annual Report and explain on your
own words their Corporate Governance Mechanism. (10 points)

Kindly read the article carefully via Investopedia Site:

https://www.investopedia.com/ask/answers/06/stockpriceandearnings.asp

Question: In your own words, explain Stock Price Maximization & Profit Maximization. Kindly site your
other reliable sources. (10 points)

INSTRUCTION

                     A.         The following are the various types of Financial Intermediaries:

Banks

Insurance Companies

Investment Banks

Finance Companies

Lending Companies

Cooperative

Requirement:

Define each financial institution in terms of the nature of their business.

Provide actual companies in the Philippines for each financial institution. Indicate the name of the
company, the list of the financial products/ services they offer. (You can get a lot of this on the internet
and websites of financial institutions)

On the list of financial products and services select at least 5 products and describe its objectives/
purpose.

Make your statements as short as possible. Bullet forms are preferred.


Submit your answers in a PDF file using this format/ template. An example is provided for your guidance

Type of Financial Intermediary

Definition

How they make money or earn profit?

Example (Name of the Company)

List of Financial Products/ Services

Bank

A bank is a financial institution licensed and regulated by the Central Bank to receive deposits and make
loans as a basic service.

Interest paid by the borrowers,

Bank service fee

Trading/ Investment gains

Bank of the Philippine Islands

Deposits

Time Deposits

UITF

Mutual Funds

Business Loans

                      B.         Differentiate Finance Companies from Lending Companies. What are their


differences and similarities ?

                      C.         Differentiate a Universal Bank from a Commercial Bank and a Thrift/Savings Bank ?

                     D.         Explain what bonds are and how they work. Make your answer as short as possible.

 
                      E.         Explain why companies issue Bonds. Make your answer as short as possible.

                      F.         Explain what stock are and how they work. Make your answer as short as possible.

                     G.         Explain why companies issue Stocks. Make your answer as short as possible.

                     H.         Explain why a company would issue preferred shares instead of common shares.
Make your answer as short as possible.

                        I.         Refer to the Chapter 2 Financial Markets and Institutions, Fundamentals of Financial


Management (12th Edition) by Eugene F. Brigham & Joel F. Houston and answer selected “Self-Test”
Questions.

Name three ways capital is transferred between savers and borrowers.

Why are efficient capital markets necessary for economic growth?

Distinguish between physical asset markets and financial asset markets.

What’s the difference between spot markets and futures markets?

Distinguish between money markets and capital markets.

What’s the difference between primary markets and secondary markets?

Differentiate between private and public markets.

Why are financial markets essential for a healthy economy and economic growth?

What’s the difference between a commercial bank and an investment bank?

List the major types of financial institutions and briefly describe the primary function of each.

What are some important differences between mutual funds, Exchange Traded Funds, and hedge funds?
How are they similar?

What are the differences between the physical location exchanges and the Nasdaq stock market?

What is the bid-ask spread?

Differentiate between closely held and publicly owned corporations.


Differentiate between primary and secondary markets.

What is an IPO?

What is a Dutch auction, and what company used this procedure for its IPO?

What does it mean for a market to be “efficient”?

Is the market for all stocks equally efficient? Explain.

Why is it good for the economy that markets be efficient?

Is it possible that the market for individual stocks could be highly efficient but the market for whole
companies could be less efficient?

What is behavioral finance? What are the implications of behavioral finance for market efficiency?

https://www.esquiremag.ph/money/industry/rural-thrift-commercial-banks-differences-a00289-
20200709

https://www.firststandard.ph/2019/06/what-is-the-difference-between-a-lending-and-financing-
company/

https://investor.vanguard.com/investing/investment/what-is-a-bond#:~:text=Bonds%20are%20issued
%20by%20governments,way%2C%20usually%20twice%20a%20year.

https://jamapunji.pk/knowledge-center/why-do-companies-issue-shares#:~:text=Companies%20issue
%20shares%20to%20raise,tend%20to%20invest%20their%20money.&text=These%20allow%20the
%20shareholders%20a,at%20general%20meetings%20of%20shareholders.

https://www.investopedia.com/terms/s/stock.asp

https://www.investopedia.com/ask/answers/042015/why-would-company-issue-preference-shares-
instead-common-shares.asp#:~:text=Preferred%20shares%20are%20an%20asset,the%20best%20of
%20both%20worlds.&text=Some%20companies%20like%20to%20issue,to%20outsiders%20than
%20common%20stocks.

In a well-developed economy like that of the United States, an extensive set of markets and institutions
has evolved over time to facilitate the efficient allocation of capital. To raise capital efficiently, managers
must understand how these markets and institutions work; and individuals need to know how the
markets and institutions work to get high rates of returns on their savings

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