Search results
Results From The WOW.Com Content Network
A good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its existing shares can be bought or sold. The following table illustrates where financial markets fit in the relationship between lenders and borrowers:
Financial markets - the market place where buyers and sellers interact with each other and participate in the trading of bonds, shares and other assets are called financial markets. Financial instruments - the products which are traded in the financial markets are called financial instruments. Based on different requirements and credit seekers ...
Financial integration among industrialized nations grew substantially during the 1980s and 1990s, as did liberalization of their capital accounts. [26]: 15 Integration among financial markets and banks rendered benefits such as greater productivity and the broad sharing of risk in the macroeconomy. The resulting interdependence also carried a ...
Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets , bond markets and derivatives markets where prices can be determined and participants both professional and non professional can meet.
The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a component of the financial market for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.
Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest considerations; and information asymmetry, which justifies curbs on freedom of contract in selected areas of financial services, particularly those that ...
Speculation, in the narrow sense of financial speculation, involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as ...
The hypothesis of financial intermediaries adopted by mainstream economics offers the following three major functions they are meant to perform: Creditors provide a line of credit to qualified clients and collect the premiums of debt instruments such as loans for financing homes, education, auto, credit cards, small businesses, and personal needs.