tailieunhanh - Lecture Investments – Chapter 1: The investment environment

Chapter 1 is introductory and contains important institutional material focusing on the financial environment. We discuss the major players in the financial markets, provide an overview of the types of securities traded in those markets, and explain how and where securities are traded. | CHAPTER 1 THE INVESTMENT ENVIRONMENT 1 THE INVESTMENT ENVIRONMENT Real Assets versus Financial Assets Financial Markets and the Economy Clients of the Financial System 2 The Investment Environment The Environment Responds to Clientele Demand Markets and Market Structure Ongoing Trends 3 REAL ASSSTS VERSUS FINANCIAL ASSETS The material wealth of a society is determined ultimately by the productive capacity of its economy—the goods and services that can be provided to its members. This productive capacity is a function of the real assets of the economy: the land, buildings, knowledge, and machines that are used to produce goods and the workers whose skills are necessary to use those resources. 4 REAL ASSSTS VERSUS FINANCIAL ASSETS Together, physical and “human” assets generate the entire spectrum of output produced and consumed by the .

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