Functions of the financial markets, Finance Basics

Functions of the Financial Markets

Functions of the Financial Markets or Institutions in Economy

1. Allocation of financial resources to the mainly productive units. Savings are moved to economic units such have alternative investments' channels. There is connection between sellers and buyers.

2. Distribution of savings to original investment.

3. Completing real output in the economy through mobilizing capital for investment.

4. Enable companies to create long term and short term investments and raise liquidity of shares.

5. Provision to individuals of investment advice via financial experts.

6. Enables companies to increase long term and short term capital or funds

7. Because of pricing of securities as like N.S.E. index shares shows changes in share prices.

8. Provide investment chances. Savers can hold financial instrument for investment completed.

Posted Date: 2/1/2013 12:03:45 AM | Location : United States







Related Discussions:- Functions of the financial markets, Assignment Help, Ask Question on Functions of the financial markets, Get Answer, Expert's Help, Functions of the financial markets Discussions

Write discussion on Functions of the financial markets
Your posts are moderated
Related Questions

The Jacobs company needs to acquire a new lift truck for transporting its final product to the warehouse. One alternative is to purchase the truck for $45,000. Maintenance of th

Stock Exchange Market The Idea and improvement of a Stock Exchange Stock exchange also identified as stock markets are special "market places" whereas already held bond

i ordered case study 1 susam and malcom. when i open the document is completely different, not the same case study an is only relivent in the usa not australia... do you have the c

'The most significant function of any Central Bank is to undertake monetary control operations'.   Discuss with specific reference to the Bank of England, highlighting its current

Question: (a) Describe the process for assigning composite and component ratings under the CAMEL rating system. (b) The IMF has developed some indicators to identify early

Characteristics of Investment - Venture Capitalists Venture capitalists, will just invest in a company whether there is a reasonable chance such the company will be successful

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l

If Metropolis Healthcare Systems have 1,150,000 in cash. How long will it take them to accumulate 2,000,000 in cash? Assume an interest rate of 5%..

Define the term Public Issues - Floating New Issues Under this method, issuing company directly offers to general public/institutions a fixed number of shares