tailieunhanh - Lecture Money and capital markets: Chapter 16 - Peter Rose, Milton Marquis

Chapter 16 - Mutual funds, insurance companies, investment banks, and other financial firms. The objectives of this chapter are to explore the many roles played by mutual funds, insurance companies, investment banks, finance companies, mortgage banks, and security dealers; to discover the different services they offer; to examine their principal sources and uses of funds; to understand the many problems they face today. | Chapter 16 Mutual Funds, Insurance Companies, Investment Banks, and Other Financial Firms Learning Objectives To explore the many roles played by mutual funds, insurance companies, investment banks, finance companies, mortgage banks, and security dealers. To discover the different services they offer. To examine their principal sources and uses of funds. To understand the many problems they face today. Introduction We now turn to a highly diverse group of financial institutions that attract savings mainly from individuals and families and, for the most part, make long-term loans in the capital market. Mutual Funds (Investment Companies) Mutual funds, or investment companies, direct the savings of individual investors into bonds, stocks, and money market securities. A small saver who buys mutual fund shares gains opportunities for capital gains and indirect access to higher yielding securities that can be purchased only in large blocks, and yet still enjoys price stability, low .