Source: supply chain finance
Financial concept daquan
noun
1. Financial market in a broad sense: generally refers to all financial transactions conducted by both the capital supply and demand sides through various financial instruments, including all monetary financial activities between financial institutions and customers, between financial institutions and between capital supply and demand sides, such as deposits, loans, trusts, leasing, insurance, mortgage and discount of bills, trading of stocks and bonds, gold foreign exchange trading, etc.
2. Narrow financial market: generally limited to financing activities with bills and securities as financial instruments, interbank borrowing between financial institutions and gold foreign exchange transactions.
3. Financial market: the general term for monetary fund transactions, gold foreign exchange trading and interbank lending between financial institutions with bills and securities as financial instruments.
4. Primary market: also known as the issuance market or the primary market, it is a trading market formed when the fund demanders sell financial assets to the public for the first time.
5. Secondary market: the trading market where the issued old securities are transferred and circulated among different investors.
6. Financial instrument: also known as credit instrument, it is a legal document to prove the relationship between creditor’s rights and debts and to conduct monetary and capital transactions accordingly.
7. Stock: a kind of securities, which is a certificate issued by a joint stock limited company to prove the identity and rights of investors as shareholders and to obtain dividends and bonuses accordingly.
8. Common stock: a basic stock issued by a joint-stock company, which is the most standard stock.
9. Priority stocks: stocks issued by joint-stock companies that have priority over ordinary shareholders in terms of company income and distribution of remaining assets.
10. Bond: A written certificate issued by the debtor to the creditor to undertake the obligation of repaying the principal and interest at the agreed time.
11. Treasury bonds: short-term debt certificates issued by the government to make up for the temporary shortage of treasury funds.
12. Mortgaged corporate bonds: bonds issued by companies with real estate or movable property as collateral.
13. Credit corporate bonds: bonds issued by companies that do not use any assets as collateral or guarantee, but rely entirely on the company’s credit.
14. Converting corporate bonds: This kind of bonds stipulates that bondholders can convert into company shares in a certain proportion and under certain conditions within a certain period of time.
15. Corporate bonds with subscription rights for new shares: This bond gives the bondholder the right to buy new shares of the company.
16. Restructured corporate bonds: A bond with lower interest rate issued by a restructured company to reduce the debt burden.
17. Debt-sinking fund corporate bonds: This kind of bonds requires the issuing company to regularly withdraw a certain percentage of profits according to the total issued amount as repayment funds before the maturity of the bonds, and hand them over to the entrusted trust companies or financial institutions for safekeeping, and gradually accumulate them to ensure that the bonds will be repaid in one lump sum.
18. Financial bond: A bond issued to the public by banks and non-bank financial institutions in order to raise funds in accordance with the relevant securities laws and securities issuance procedures of the state, using their own reputation.
19. Fund securities: also known as investment fund securities, are securities issued to the public by the sponsors of investment funds, which prove that the holders enjoy the ownership of assets, the right to return assets and the right to distribute the remaining property according to their shares. It is the product of certain equity combinations of stocks, bonds and other financial products.
20. Bill: negotiable securities that the drawer promises or entrusts the drawee to unconditionally pay a certain amount on the specified date or at sight.
21. Free foreign exchange: It can be bought and sold freely in the foreign exchange market without the approval of the issuing country, and can be freely converted into currencies of other countries. They are widely used as means of payment and circulation in international economic exchanges.
22. Bookkeeping foreign exchange: Without the approval of the relevant foreign exchange administration departments, it cannot be converted into other countries’ currencies, and usually it can only be used between the countries of the agreement according to relevant agreements.
23. Derivative financial instruments: also known as financial derivatives, refer to a kind of financial products whose value depends on original financial instruments.
24. Money market: a short-term financial market with financial assets with a maturity of less than one year as the transaction object.
25. Interbank lending market: a market formed by short-term capital lending activities among various financial institutions.
26. Central bank bills: short-term bonds issued by the People’s Bank of China, with maturities ranging from 3 months to 1 year.
27. Pre-issuance market: In reality, there is a kind of treasury bond trading that is not conducted after the issuance is completed, but immediately after the announcement of the issuance. This trading market is also called the pre-issuance market. Such as WI-Fi transactions in the United States.
28. Transferable large deposit certificate: a certificate of deposit issued by a commercial bank and transferable in the market.
29. Repurchase agreement: When the securities holder sells the securities, it is agreed with the buyer that the seller will buy back an equal amount of the same kind of securities from the buyer at the agreed price on a certain date in the future.
30. Capital increase: An established joint-stock company issues new shares, which is called capital increase.
31. Credit transaction: also known as advance transaction or margin transaction, it is a transaction method in which the customer pays a certain amount of cash or stock to the broker as a margin, and the difference is advanced by the broker.
32. Option trading: Also known as option trading, it means that both parties reach a contract on whether to buy or sell a certain stock at an agreed price and within an agreed time.
33. Stock index futures trading: Futures trading with the stock price index as the object aims to reduce the risk of stock investment and increase the attractiveness of stock investment.
34. Stock index option trading: buying and selling option contracts based on stock price index.
35. Stock exchange: a place organized according to certain methods and rules to conduct centralized securities trading, also known as the floor trading market.
36. Membership system: A stock exchange in the form of membership organization is a legal entity that is formed voluntarily by intermediaries engaged in securities business and is not for profit.
37. Company system: The stock exchange in the form of company system is organized according to the company law. The exchange collects the issuer’s "listing fee" and extracts the "handling fee" and other service fees for securities transactions.
38. Commission broker: a broker who accepts the entrustment of clients, buys and sells on behalf of clients in the exchange and receives a fixed commission.
39. Two-yuan broker: Also known as expert broker, it is specially entrusted by the commission broker, and buys and sells on his behalf, charging a certain commission.
40. Special broker: Also known as professional broker, it is a broker who has a special status in the exchange and is engaged in special securities trading.
41. Securities dealers: also known as trading hall dealers, they only handle self-operated business and do not handle entrusted business.
42. Zero-share dealers: securities firms specializing in stock trading with less than one trading unit.
Brief discussion
1. What are the advantages and disadvantages of direct financing and indirect financing?
Advantages of direct financing
(1) The close relationship between the supply and demand of funds is conducive to the rapid and rational allocation of funds and the improvement of efficiency in use.
(2) The cost of financing is low and the investment income is high.
Disadvantages of direct financing
(1) There are many restrictions on the amount, term and interest rate of direct financing.
(2) The liquidity of financial instruments used in direct financing is weaker than that of indirect financing, and their cashing ability is lower.
(3) Direct financing is risky.
Advantages of indirect financing
(1) Flexible and convenient.
(2) High security.
(3) The scale economy of finance has been improved.
Disadvantages of indirect financing
(1) The direct connection between the supply and demand sides of funds is cut off, which will reduce the concern of investors on enterprise production and the pressure and binding force of fund raisers on the use of funds to a certain extent.
(2) intermediary agencies charge a certain fee for providing services, which increases the cost of financing.
2, the relationship between the four elements of financial market.
Financial market participants, financial market trading objects, financial market intermediaries and financial market prices are the four major elements that constitute the financial market. They are closely related, mutually promoting and influencing each other. Among them, financial market participants and financial market trading objects are the most basic elements. As long as these two elements exist, financial markets will be formed, while financial market intermediaries and financial market prices are naturally generated or inevitably accompanied. Perfect intermediary institutions and price mechanisms are important conditions for the development of financial markets.
3. Particularity of financial market.
(1) There are mainly loan relationships and principal-agent relationships among market participants, which are temporary separation or conditional transfer of the right to use and ownership of funds based on credit.
(2) The transaction object is monetary funds or their derivatives.
(3) The transaction mode is special.
(4) The price determination in the market is complicated, with many influencing factors and great fluctuations.
(5) Trading places are invisible in most cases, and the ways of trading through telecommunications and computer networks are becoming more and more common.
4. The main differences between capital market and money market.
(1) Different maturities: all financial instruments traded in the capital market are more than one year, while those traded in the money market are within one year.
(2) Different roles: most of the funds in the capital market are used for the creation, renewal and expansion of equipment and storage materials of enterprises, or the establishment of public utilities and the maintenance of financial balance. Most of the money in the money market is used for short-term working capital of industrial and commercial enterprises.
(3) The degree of risk is different: the risk of credit instruments in the capital market is higher, and the risk of credit instruments in the money market is smaller.
5. Functions and functions of financial markets
(1) Facilitate investment and fund-raising.
(2) Reasonably guide the flow of funds, promote capital concentration and transfer to high-efficiency units.
(3) Facilitate the flexible conversion of funds.
(4) realize risk diversification and reduce transaction costs.
(5) It is conducive to enhancing the flexibility of macro-control.
(6) It is conducive to strengthening economic ties between departments, regions and countries.
6, the difference between financial instruments and financial assets
Financial instruments are sometimes called financial assets, but strictly speaking, these two concepts are different. Although all financial instruments are financial assets to the holders, they cannot be called financial assets if we look at them in isolation. For example, money issued by the central bank and stocks and bonds issued by enterprises cannot be said to be financial assets, because for issuers, money, stocks and bonds are their liabilities. Therefore, money, stocks and bonds should not be simply called financial assets, but should be called financial instruments. Financial instruments are financial assets to the holders.
7. Characteristics of stocks
(1) Stock is a kind of ownership certificate, which represents the certificate of invested share capital.
(2) Stocks are permanent securities with no repayment period.
(3) The return of stock has great uncertainty.
8. Main differences between common stock and preferred stock
(1) Ordinary shareholders enjoy the right to participate in the operation of the company, while preferred shareholders generally do not enjoy the right to participate in the operation of the company.
(2) The income of common shareholders depends on the profitability of the company, while the income of preferred shares is fixed.
(3) Ordinary shareholders cannot withdraw their shares, but can only be realized in the secondary market, while preferred shareholders can request the company to redeem their shares in accordance with the redemption clause attached to the preferred shares.
(4) Priority stock is the most important kind of special stock, which enjoys priority in the company’s profit and the distribution of surplus property.
9, the difference between bonds and stocks
(1) The relationship indicated is different: bonds indicate the relationship between creditor’s rights and debts, and stocks indicate the ownership relationship.
(2) The rights and obligations of investors are different: bond investors have the right to obtain principal and interest, but have no right to ask about business management activities. Stock investors can get the right to operate, but they can’t withdraw their shares to recover their principal.
(3) The determination of income is different: the income of bonds is determined by their interest rates, and the income of stocks depends on the operating conditions of the issuing company.
10, the main reason for the government to issue treasury bonds.
(1) To make up for the temporary and seasonal balance of government finance and meet the temporary capital turnover needs.
(2) When unexpected events occur in the process of budget implementation, resulting in an increase in expenditure and it is difficult to keep up with the income, it is necessary to cope with temporary emergencies.
(3) When the interest rate in the financial market is too high, the interest burden of the government issuing long-term bonds is too heavy, so the short-term treasury bonds are issued first, and then the low-interest long-term bonds are issued after the market interest rate changes in the future.
11, fund securities, stocks and bonds in common.
(1) The investments in fund securities, stocks and bonds are all securities investments.
(2) The forms of fund securities are similar to those of stocks and bonds.
(3) Stocks and bonds are the investment objects of fund securities.
12. The difference between fund securities, stocks and bonds
(1) Different investment status: Shareholders are shareholders of the company and have the right to express their opinions on major decisions of the company. The bondholders are creditors and have the right to recover the principal and interest at maturity. The holder of fund securities is the beneficiary of the fund and has the right to distribute the investment income.
(2) The degree of risk is different: the risk of stocks is the greatest, the risk of fund securities is the second, and the risk of bonds is the smallest.
(3) The returns are different: stocks have the highest returns, followed by fund securities, and bonds have the lowest returns.
(4) Different ways of investment: unlike investors in stocks and bonds, fund securities are an indirect way of securities investment.
(5) Different ways of investment recovery: bond investment has a certain term, and the principal is recovered after the expiration, while stock investment is indefinite. If it is to be recovered, it can only be realized at the market price in the securities exchange market. Fund securities are different depending on the form of funds held.
13. Similarities and differences between negotiable certificates of deposit and general certificates of deposit.
(1) What they have in common is that they are all time certificates of deposit issued by banks, and banks pay interest.
(2) The difference is that it cannot be withdrawn in advance, but it can be transferred at any time. It has a specific amount and term, and the term is short, usually 14 days to one year. The interest is paid in coupon rate every six months or on the maturity date, and the denomination is large. Most large deposit certificates in the United States are $100,000.
14. What are the benefits of negotiable certificates of deposit for banks and investors?
Certificate of deposit is a good financial tool for investors and banks;
(1) certificates of deposit enable commercial banks to take the initiative to issue certificates of deposit in the market to raise funds, so that commercial banks can manage their liabilities and assets more actively.
(2) certificates of deposit enable investors to buy or sell certificates of deposit at any time according to the situation of capital week and adjust their asset portfolio.
(3) certificates of deposit improve the stability of commercial banks’ sources of funds.
15. Purpose of stock issuance
(1) To issue shares for the establishment of a joint-stock company.
(2) shares issued by an established joint-stock company to improve its operation or meet a specific need.
16. Purpose of capital increase
(1) Increase the proportion of self-owned capital and improve the capital structure. (2) maintain or expand business. (3) Meet the listing standards of the stock exchange. (4) promoting cooperation or maintaining the right to operate. (5) Divide benefits among shareholders. (6) Others, such as company restructuring or merger.
17, the characteristics of futures trading
(1) The transaction and delivery are not synchronized. (2) It can be offset at the time of delivery, that is, the liquidation parties only need to pay the difference. (3) There are both ordinary investors and speculators in the transaction.
18, the characteristics of OTC:
(1) A wide range of trading objects. (2) Both parties agree on the transaction price. (3) The trading mode is more flexible. (4) The trading places are scattered.
Transfer from: those things in the investment circle
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