Carte 1
Financial markets
  Participants
    Types
      Brokers
      Exchanges
      Maker makers
      Banks
        Central banks
      Investors
        Individuals
        Professionals
        Companies
        Mutual funds / Hedge funds
        Institutional investors
      Information providers
        Bloomberg (market data and more)
        Datastream Thomson Reuters
        Moriningstar (funds)
      Regulators
        Government intervention
          Moral hazard
        Transparency
        Transaction costs
    Behavior
      Rational vs irrational
      Manipulation
      Short-term trading
        Speculation
      Long-term investment
  Price behavior
    Efficient market hypothesis
      Link between infromation and market price
      Estimation game
      Expectation vs realization of events
        Example: announcement of profits
        Heterogenity in expectations
      Information processing
      Speed of incorporation of information
      Three levels
        Weak (market data: prices and volumes)
        Semi-strong (public information)
        Strong (public and private information)
          What is private information?
            Information given by a model
            Information from the top management team
              Insider trading
    Rationality vs emotions
    Difference between price (market) and value (model): "Price is what you pay, value is what you get." Warren Buffet.
      Price: today when you buy
      Value: in the future when you receive revenues (dividends) and when you sell.
    Link between the news flow and the price evolution over time
  Markets
    Primary vs secondary markets
    Physical vs digital
    Cash/Spot vs derivative markets
    Price formation
      At discrete time: fixing (11 AM)
      Continuous time: order book (9 AM - 6 PM)
    Functioning of markets
      Rules
      Trading hours
    Roles
      Asset allocation
      Risk management
      Liquidity
      Price information
      Importance of financial markets for the economy
        Allocation of financial ressources for companies
          Equity (stocks)
          Debts (bonds)
        Allocation of funds for individuals
  Assets / Securities
    Stocks
      Equity
    Bonds (long term)
      Debt
    Commercial paper (short term)
      Debt
    Derivatives
      Futures & Forward
      Swaps
      Options
    Traditional (fiat) currencies
    Cryptocurrencies
    Repos
    ETF
    Mutual funds
    Gold, silver, commodities
    Cash
  Interest rates
    Risk-free rate
    Spread
    Interest curve
  Liquidity
    Definition of liquidity
      Ability to buy and sell assets in the market without price impact
      Impact of supply and demand
    Measures of liquidity
      Bid ask spread
      Market depth
      Market tightness
      Resilience
      Trading volumes
    Role of market makers
      Provide liquidity to market participants
      Improve market efficiency
    Fees
      Maker fees (orders increasing volatility)
      Taker fees (orders decreasing volatility)
  Risk
    Volatility
    Diversification
    Measures of risk
      Value at risk
      Expected shortfall
      Stress tests
  Perfomance
    Gain / Loss
    Return
      Arithmetic return
      Logarithmic return
  Regulation
    Institutions
      SEC in the US
      AMF in France
      CSRC in China
      SEBI in India
    Rules
      Insider trading
      Short selling
  Strategies
    Trading
      Technical analysis
        Chartism
        Japanese candlesticks
        Price patterns
        Moving averages
      Fundamental analysis
        Financial accounts
        Economic environment
    Investment
      Passive portfolio management
        Buy and hold
        Market-capitalisation weighting
        Market factor
      Active portfolio management
        Fundamental analysis
        Stock picking
        Market timing
      Smart beta
        Equal weighting
        Factors
          Value
          Growth
          Size
          Momentum
          Minimum volatility