Financial knowledge

1. The contents of finance can be summarized as currency issuance and withdrawal, deposit absorption and payment, loan issuance and recovery, gold and silver and foreign exchange transactions, securities issuance and transfer, insurance, trust, local currency and international currency settlement, etc. Institutions engaged in financial activities are mainly banks, trust and investment companies, insurance companies, securities companies and investment funds, as well as credit cooperatives, finance companies, financial asset management companies, postal savings institutions, financial leasing companies, securities, gold and silver, foreign exchange and so on.

2. Finance is an economic category formed after the emergence of credit funds. It and credit are two different concepts: finance does not include physical loans, especially the financing of monetary funds (narrow sense finance). People not only borrow money to raise funds, but also issue stocks to raise funds. Credit refers to the borrowing of all currencies, and finance in a narrow sense refers to the financing of credit funds. The reason why people want to create a new concept besides "credit" to refer to the financing of credit funds is to summarize a new economic phenomenon; The two economic processes of credit and currency circulation have been closely combined. Bank credit can not only create money, but also reduce money, which is regarded as the core of finance. Finance is a discipline that is separated from economics to study finance. The traditional research field of finance has two directions: macro-level financial market operation theory and micro-level enterprise investment theory.

3. How to understand "hot money"? Hot money is speculative short-term capital. In the business dictionary, hot money is defined as "extremely liquid short-term capital, which quickly flows to any country that can provide better returns". Shanghai Securities Research and Development Center believes that traditional hot money mainly refers to international short-term capital, but according to China's national conditions, hot money includes both international short-term capital and medium-and long-term capital. The purpose of hot money is to create money in the shortest possible time. Short-term speculative funds flow rapidly in the market only for the pursuit of high returns, purely for speculative profits, rather than creating employment opportunities, goods or services. 20111June 10 The newly-increased foreign exchange holdings showed negative growth for the first time in the past four years, and overseas hot money left China in succession. It has influenced China's economy to varying degrees.

4. The investment objects of hot money are mainly foreign exchange, stocks, precious metals and their derivative markets, which are characterized by strong speculation, quick liquidity and strong concealment. Hot money has the characteristics of "four highs": first, high returns and high risks; Second, it has a large amount of information and high sensitivity; The third is high liquidity and short-term; Fourth, highly fictitious and speculative investment. Hot money has a certain lubricating effect on the financial market, but the investment of hot money neither creates jobs nor provides services, so it is highly fictitious, speculative and destructive.