Is a private non-profit and non-stock organization created to provide and maintain a fair, efficient, transparent and orderly market for the purchase

Participants of financial system

are financial instruments that represents ownership over a company.

creating and transferring money.

newly issued securities are being traded, the transaction is between issuing entity and investor

Example of Financial System

a financial instrument that derives its performance from the performance of an underlying asset.

long term debt and equity instruments

are financial instruments that represents indebtedness of an issuer to an investor.

Is a physical property, it can be touched.

Three Components of Financial System

previously issued oustanding securities are being traded (transaction between investor to investor)

Marketing and Transferring Financial Asset

Financial Instruments

short term debt instruments

any resource that is expected to provide future benefits

Is an asset that is not physical in nature, its value bears no relation to its form, Physical or otherwise.

ensure the financial system is stable

set of institutions that permit the exchange of funds.

a liquid asset gets it value from contractual right claim.

Regulates the Financial Institutions engaged in providing Insurance activities.

Accumulating Savings and Lending and Investing Savings

regulates the securities markets and is supposed to protect investors against mismanagement and fraud.