Functions of the financial markets, Finance Basics

Assignment Help:

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.


Related Discussions:- Functions of the financial markets

Foreign trade balance, Foreign Trade Balance If the Government buys or...

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source

Calculate the market price of share corporate tax rate, The Balance Sheet o...

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

What is maximal value of firm, Suppose an entrepreneur owns a firm that has...

Suppose an entrepreneur owns a firm that has a production technology that generates the following revenue: R(e) = e 2 +100e where revenue depends on his effort level e. The monetar

Net advantage to leasing, 1. Biily Mays , Inc, (BMC) is interested in acqui...

1. Biily Mays , Inc, (BMC) is interested in acquiring a 1 million pre to print and circulate its meages. The press has 8 years useful life at the end of which its expected to be 90

Debtors collection period - formula, Debtors Collection Period - Formula ...

Debtors Collection Period - Formula Fomula is given below: Debtors collection period = 365/ Debtors turnover Or (365 x Average debtors)/ Annual credit sales This

Define financial factors that influence value of a business, List and expla...

List and explain the three financial factors that influence the value of a business. Ans: The three issues that influence the value of a firm's stock price are cash flow , ti

Joint stock companies - types of business organisations, Joint Stock Compan...

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co

Binomial and continuous model - mathematics of finance, Consider a binomial...

Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S 0 = 100, T = 1, 4t = 1=12. Note that u and d are monthly effective rates of retur

Assignment, what are the difference between receipt and payment account and...

what are the difference between receipt and payment account and income and expenditure account ?

Acceptance rule of accounting rate of return or arr, Acceptance Rule of Acc...

Acceptance Rule of Accounting Rate of Return or ARR ARR procedure will accept those projects whose ARR is higher rather than that set with management or with bank rate and it

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd