Group Presentations-Financial

Intermediaries

Financial Intermediaries

• What is a share?

• What does it mean when we say “John owns shares in company A”? And what does he get from owning the shares?

• How can firms obtain capital via shares?

• Draw a diagram showing the relationship between investors, share market and firms.

Financial Intermediaries

• What is a bond?

• What does it mean when we say “Mary owns bonds of company A”? And what does she get from owning bonds?

• How can firms obtain capital via bonds?

• Draw a diagram showing the relationship between investors, share market and firms.

Financial Intermediaries

• What services does a bank provide to its depositors?

• How can firms obtain capital via banks?

• How do banks make a profit?

• Draw a diagram showing the relationship between depositors, banks and firms.

Financial Intermediaries

• What is a unit trust i.e. what does it do?

• Why do people invest in unit trusts?

• How can firms obtain capital via unit trusts?

• Draw a diagram showing the relationship between investors, unit trust and firms.

Financial Intermediaries

• What services does an insurance company (IC) provide to its customers?

• Provide an example for your answer above.

• How can firms obtain capital via IC?

• Draw a diagram showing the relationship between customers, IC and firms.

Financial Intermediaries

• What services does a retirement fund (RF) provide to salaried workers?

• Provide an example for your answer above.

• How can firms obtain capital via RF?

• Draw a diagram showing the relationship between workers, RF and firms.