Fin421 2020 lecture 1 - Study guides, Class notes & Summaries

Lecture 1: Financial Markets FIN 421 – Fall 2020 Professor Michael Barnett Outline 1 The finance industry 2 Types and characteristics of financial assets 3 Trading basics The Financial System Basic Functions of the Financial System Financial assets contribute indirectly to the productive capacity of the economy by providing: • Efficient allocation of funds. • Consumption timing (saving for retirement, college borrowing, buying a house) • ’Good ideas’ are able to attr...