Finance School of Management Acceleration of financial Innovations Insurance, stock, and future markets(400 yrs) Debt or equity: design of securities(400 yrs) The supply side New discoveries in telecommunications, information processing, and finance theory have significantly lowered the costs of achieving global diversification and specialization in the bearing of risks The demand side Increased volatility of exchange rates, interest rates, and commodity prices have increased the de mand for ways to manage k.四 Complete markets: not possible uesTc 2727 Finance School of Management Acceleration of Financial Innovations ❖ Insurance, stock, and future markets (400 yrs) ❖ Debt or equity: design of securities (400 yrs) ❖ The supply side New discoveries in telecommunications, information processing, and finance theory have significantly lowered the costs of achieving global diversification and specialization in the bearing of risks. ❖ The demand side Increased volatility of exchange rates, interest rates, and commodity prices have increased the demand for ways to manage risk. ❖ Complete markets: not possible