An Overview of the Financial System(英文版)(ppt 43页)

An Overview of the Financial System(英文版)内容提要：
Function of Financial Markets：
Perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds
Direct finance: borrowers borrow funds directly from lenders in financial markets by selling them securities.
Debt and Equity Markets
Debt instruments
A bond or a mortgage, which is a contractual agreement by the borrower to pay the holder of the instrument fixed dollar amounts at regular intervals until a specified date (maturity date).
Maturity: number of years (term) until that instrument’s expiration date. 
short-term: less than a year.
long-term: ten years of longer
intermediate-term: between one and ten years
Equities
Claims to share in the net income and the assets of a business.
Equities often make periodic payments (dividends) to their holders and have no maturity date.
Owing stock means you own a portion of the firm and thus have the right to vote on issues important to the firm and to elect its directors.