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
whom do you think rajendra should eat with and why

Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the


Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i


Evaluate the probability of 10 or more customers arriving within 2 hours if on average 7 customers arrive within one hour. Customers arrive independently.

Management of Account Receivable In order to keep current customers and attract new ones, most firms find it necessary to offer credit. Accounts receivable represents the exte

Define the term - Finding a Broker Selection of a broker depends largely on the kind of services rendered by a specific broker as well as upon the type of transaction that a

Define benefit plan for the employee participants

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years.  By assuming a discount rate of 20 perce