finance

Financial
institutions,
financial
instruments, and
the financial
market
FINANCIAL
FINANCIAL INSTITUTIONS
INSTITUTIONS

Financial institution (FI) is a company engaged in the business of dealing with financial and monetary
transactions such as deposits, loans, investments, and currency exchange.

Financial institutions serve most people in some way, as financial operations are a critical part of any
economy, with individuals and companies relying on financial institutions for transactions and investing.
THE
THE MOST
MOST COMMON
COMMON TYPES
TYPES of
of
FINANCIAL
FINANCIAL INSTITUTIONS
INSTITUTIONS
COMMERCIAL SAVING AND
BANKS 01 02 LOANS

CREDIT INVESTMENT
UNIONS 03 04 BANKS
THE
THE MOST
MOST COMMON
COMMON TYPES
TYPES of
of
FINANCIAL
FINANCIAL INSTITUTIONS
INSTITUTIONS
INSURANCE
BROKERAGE
COMPANIES 05 06

INVESTMENT
COMPANIES 07
 A type of financial institution that accepts
deposits, offers checking account services,
makes business, personal, and mortgage loans,
and offers basic financial products like
certificates of deposit (CDs) and savings
accounts to individuals and small businesses. A
commercial bank is where most people do their
banking, as opposed to an investment bank,
make money by providing and earning interest
from loans

COMMERCIAL BANK
 MA
TH
refers to a financial institution that focuses
on providing checking and savings accounts,
loans, and residential mortgages to
consumers. These institutions are also
referred to as thrifts—credit unions and
savings banks that are mutually owned by
their customers. As such, many of these
companies are community-based and
privately owned, although some may also be
publicly-traded.ourselves
SAVINGS AND LOAN
 A type of financial cooperative that provides
traditional banking services. Ranging in size from
small, volunteer-only operations to large entities
with thousands of participants spanning the
country, credit unions can be formed by large
corporations, organizations, and other entities for
their employees and members. Credit unions are
created, owned, and operated by their
participants. As such, they are not-for-profit
enterprises that enjoy tax-exempt status.
CREDIT UNION
INVESTMENT
INVESTMENT BANKS
BANKS
Specific division of banking related to
the creation of capital for other
companies, governments, and other
entities. specialize in providing services
designed to facilitate business
operations, such as capital expenditure
financing and equity offerings,
including initial public offerings
(IPOs). They also commonly offer
brokerage services for investors, act as
market makers for trading exchanges,
and manage mergers, acquisitions, and
other corporate restructurings.
INSURANCE
INSURANCE COMPANIES
COMPANIES
A contract, represented by a policy,
in which an individual or entity
receives financial protection or
reimbursement against losses from an
insurance company. Providing
insurance, whether for individuals or
corporations, is one of the oldest
financial services. Protection of
assets and protection against
financial risk, secured through
insurance products, is an essential
service that facilitates individual and
corporate investments that fuel
economic growth.
 to act as a middleman that
connects buyers and sellers to
facilitate a transaction.
Brokerage companies typically
receive compensation by means
of commissions or fees that are
charged once the transaction has
successfully completed

A brokerage account is an
arrangement in which an investor
deposits money with a licensed BROKERAG
brokerage firm, which places
trades on behalf of the customer.
E
Although the brokerage executes
the orders, the assets belong to ( COMPANY)
the investors, who typically must
INVESTMENT
INVESTMENT COMPANIES
COMPANIES
80
A corporation or trust engaged in the business
of investing the pooled capital of investors in
60
financial securities. This is most often done
either through a closed-end fund or an open-end
fund (also referred to as a mutual fund). In the
40 U.S., most investment companies are registered
with and regulated by the Securities and
Exchange Commission (SEC) under the
20 Investment Company Act of 1940. An
investment company is also known as "fund
company" or "fund sponsor." They often partner
0
with third-party distributors to sell mutual
CHESTER LESTE WILJER
R funds.
 Financial
m market
refer broadly to any marketplace where the

at
trading of securities occurs, including the stock
market, bond market, forex market, and
derivatives market, among others. Financial
markets are vital to the smooth operation of

h capitalist economies.
MONEY MARKET .
refers to trading in very short-term debt
investments. At the wholesale level, it
involves large-volume trades between
institutions and traders. At the retail level, it
includes money market mutual funds bought
by individual investors and money market
accounts opened by bank customers

CAPITAL MARKET
where savings and investments are channeled
between suppliers—people or institutions with
capital to lend or invest—and those in need.
Suppliers typically include banks and investors
while those who seek capital are businesses,
governments, and individuals
 The role of
m financial
intermediari
at es in
h financial
markets
 An entity that acts as the middleman between two
parties in a financial transaction, such as a
commercial bank, investment bank, mutual fund, or
pension fund. Financial intermediaries offer a number
of benefits to the average consumer, including safety,
liquidity, and economies of scale involved in banking
and asset management. Although in certain areas,
such as investing, advances in technology threaten to
eliminate the financial intermediary, disintermediation
is much less of a threat in other areas of finance,
including banking and insurance.

financial
financial intermediary
intermediary
 Reduce
1 costs 3 4
diversific
ation Poolin Financi
2 g of al
funds flexibil
ity
 REDUCE
refers
referstotomeasures
COSTS
measuresimplemented
implementedby byaa
company
companytotoreduce
reduceitsitsexpenses
expensesandandimprove
improve
profitability.
profitability. Cost cutting measuresare
Cost cutting measures are
typically implemented during
typically implemented during times oftimes of
financial
financialdistress
distressfor
foraacompany
companyor orduring
during
economic
economic downturns. They can alsobe
downturns. They can also be
enacted if a company's management
enacted if a company's management expects expects
profitability
profitabilityissues
issuesininthe
thefuture,
future,where
wherecost
cost
cutting can then become part of the business
cutting can then become part of the business
strategy.
strategy.
 a riskmanagement strategy
that mixes a wide variety of
investments within a
portfolio. A diversified
portfolio contains a mix of
distinct asset types and
investment vehicles in an diversific
attempt at limiting exposure
to any single asset or risk. ation
The rationale behind this
technique is that a portfolio
constructed of different
kinds of assets will, on
average, yield higher long-
term returns and lower the
risk of any individual
holding or security.
 POOLING
POOLING OF
OF FUNDS
FUNDS

Are funds in a portfolio from many

individual investors that are aggregated for
the purposes of investment. Mutual funds,
hedge funds, exchange traded funds,
pension funds, and unit investment trusts
are all examples of professionally managed
pooled funds. Investors in pooled funds
benefit from economies of scale, which
allow for lower trading costs per dollar of
investment, and diversification.
 Refers to the ability of a firm to
respond in a timely and value-
FINANCIAL maximizing manner to unexpected
FLEXIBILITY changes in the firm's cash flows or
investment opportunity set. ... With
financing frictions, there can be
some states of the world in which
firms are constrained from
undertaking valuable projects.
Financing cash flow includes all
proceeds gained from issuing debt
and equity as well as payments made
by the company
 REFERENCE :
https://www.investopedia.com/terms/f/financialinstitution.asp
https://www.investopedia.com/terms/f/financialinstitution.asp
https://www.investopedia.com/terms/f/federal-savings-and-loan.asp
https://www.investopedia.com/terms/f/federal-savings-and-loan.asp
https://www.investopedia.com/terms/c/creditunion.asp
https://www.investopedia.com/terms/c/creditunion.asp
https://www.investopedia.com/terms/i/investment-banking.asp
https://www.investopedia.com/terms/i/investment-banking.asp
https://www.investopedia.com/terms/c/commercialbank.asp
https://www.investopedia.com/terms/c/commercialbank.asp
https://www.investopedia.com/terms/i/insurance.asp
https://www.investopedia.com/terms/i/insurance.asp
https://www.investopedia.com/terms/b/brokerage-company.asp
https://www.investopedia.com/terms/b/brokerage-company.asp
https://www.investopedia.com/terms/b/brokerageaccount.asp
https://www.investopedia.com/terms/b/brokerageaccount.asp
https://www.investopedia.com/terms/i/investmentcompany.asp
https://www.investopedia.com/terms/i/investmentcompany.asp
https://www.investopedia.com/terms/f/financial-market.asp
https://www.investopedia.com/terms/f/financial-market.asp
https://www.investopedia.com/terms/m/moneymarket.asp
https://www.investopedia.com/terms/m/moneymarket.asp
https://www.investopedia.com/terms/c/capitalmarkets.asp
https://www.investopedia.com/terms/c/capitalmarkets.asp
https://www.investopedia.com/terms/f/financialintermediary.asp
https://www.investopedia.com/terms/f/financialintermediary.asp
https://www.investopedia.com/terms/c/cost-cutting.asp
https://www.investopedia.com/terms/c/cost-cutting.asp
https://www.investopedia.com/terms/d/diversification.asp
https://www.investopedia.com/terms/d/diversification.asp
https://www.investopedia.com/terms/p/pooledfunds.asp
https://www.investopedia.com/terms/p/pooledfunds.asp
https://www.investopedia.com/terms/c/cashflow.asp
https://www.investopedia.com/terms/c/cashflow.asp
https://
https://
www.google.com/search?q=financial+flexibility+meaning&oq=FIN&aqs=chrome.1.69i59l4j69i57j69i60l3.5814j0j7&sou
www.google.com/search?q=financial+flexibility+meaning&oq=FIN&aqs=chrome.1.69i59l4j69i57j69i60l3.5814j0j7&sou
rceid=chrome&ie=UTF-8
rceid=chrome&ie=UTF-8
GROUP 1
WILJERSON DIZON
JOHN LESTER BACANI
CHESTER SANTOS
CHARLIE QUIAMBAO
BRENNAN RICH PANALIGAN
ANTHONY FHELLE QUIAMBAO
JOSHUA PHILIP BUNUAN