Lecture 17 - Investment Banking and Secondary Markets

Financial Markets


First, Professor Shiller discusses today's changing financial system and recent market stabilization reform introduced by U.S. Treasury Secretary Henry Paulson. The financial system is inherently unstable and would benefit from more surveillance, particularly for consumer protection issues, given the recent subprime mortgage crisis. Although this particular reform might not be successful, more regulators and policymakers are talking about changing the stabilization system and will likely alter the role of the Fed in the future. Second, Professor Shiller introduces the mechanics and role of investment banking. Investment banks underwrite securities and arrange for the issue of stocks and bonds by corporations. Corporations work with investment banks to navigate the Securities and Exchange Commission requirements for issuing securities. The banks then take on a "bought deal" or "best efforts deal" and help the corporation to find a market for the securities. Investment banking depends on the reputation of its bankers and, as we have seen recently, can be destroyed by rumors about the bank's insolvency.

Lecture 19 - Investment Banks

Financial Markets (2011)


Lecture 13 - Investments in Health

Human Capital and Intergeneration Mobility

University of Chicago

Lecture 1 - Introduction to Brain and Behavior

Natural Science II: Brain and Behavior


Lecture 14 - Corp Finance and Financial Markets

Corporate Finance for Healthcare Administrators

University of Michigan