Introduction to Corporate Finance – Markets, Institutions, and Governance

This video covers the following learning objectives:

• Describe the structure of financial markets:

  • Identify the distinction between primary and secondary markets.

  • Understand the different types of financial markets:

    • Capital markets (e.g., stocks and bonds)

    • Money markets (e.g., T-bills)

    • Derivatives markets (e.g., options, futures)

    • Foreign exchange and commodities markets

  • Explain the role of financial intermediaries in capital allocation.

  • Recognize how financial markets facilitate the flow of funds from savers to borrowers.

• Explain corporate governance principles:

  • Define key principles of corporate governance:

    • Accountability (e.g., CEO oversight by the board)

    • Transparency (e.g., accurate financial disclosure)

    • Fairness (e.g., equal treatment of shareholders)

    • Responsibility (e.g., ethical conduct, ESG)

  • Describe the structure of governance systems, including:

    • Board of directors (independent vs. inside members)

    • Committees (audit, compensation, governance)

    • Shareholder rights and protections

  • Discuss the impact of poor governance through real-world case studies (e.g., Enron).

• Apply theoretical concepts through real-world examples:

  • Use Enron as a comprehensive case study showing failure in both market structure and governance.

  • Analyze short example questions with correct answers to reinforce applied understanding.