Three Financiers Who Changed The Financial World

The role of finance in our life

Three major objectives of business finance

Obtain an adequate supply of capital Conserve and increase the capital Make profit from the use of funds

Financial crisis

Before the industrial revolution

John Law (1671-1729)

Law

was

Scottish

financier born in Edinburgh

Tried to heal French public

finance and to facilitate the money supply through the introduction money. of paper

Mississippi Company
Centralization of colonial companies under a single Mississippi Company

Law used the Bank to increase the money supply

Establishment of the Banque Generale in 1716

Four steps

Using the internal rate of return to encourage holders of coins to replace them with banking business

The outcome of the campaign and lessons of Law's experiment

1. The system of Law entered into an impasse, since the objective of maintaining a low interest rate by increasing the money supply is incompatible with the need to reevaluate the tickets money other than coins. 2. The public felt betrayed and lost confidence in the system.

3. The main consequence of the failure of

"Law System" was the suspicion that

France would not maintain paper money throughout the eighteenth century, thus delaying financial innovation for economic development.

Mutual fund

A mutual fund is a type of professionally-managed type collective investment scheme that pools money from many investors.

Massachusetts Investors' Trust by L. Sherman Adams

1924:
Real trailblazer in the financial services industry Today, mutual funds invested $ 6.1 trillion in America alone.

The invention of credit cards

The most common method of payment

Total "plastic" debt of Americans is $ 700 billion.

Problems that must be solved

How to pay without cash?

What to do in order not to carry a pack of cards for each restaurant and shop?

First credit card

- Profit without charging interest - A $3 annual interest - Focus on salesmen

The achievements and inventions of these people

have changed our world forever. And though many of

their risky ideas were not implemented fully during their lives with dignity, we have finalized their concepts and use their inventions to this days.

A little more to discuss

What is the finance for you?

Who is the "pioneer" in the world of finance for you ?

Credit card: convenience or a temptation?

Do you see the continued progress of society in the

development of the financial sector?

Thank you for your attention!