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

Investment opportunity and capital structure, Investment Opportunity and Ca...

Investment Opportunity and Capital Structure Investment Opportunity Lack of suitable investment opportunities, that is so, by positive returns or N.P.V., may encourage a

Example of npv method, Example of NPV Method Resolution limited inte...

Example of NPV Method Resolution limited intends to purchase a machine worth Shs.1, 500,000 that will have a residue value Shs.200,000 after 5 years helpful life. The saving

Explain credit risk and counterparty risk, Your boss has worked in banking ...

Your boss has worked in banking for many years, and has specialised during his career in lending to large and medium-sized companies. He must attend a meeting in a few days' time t

Dow Theory, Dow theory elliot wave theory

Dow theory elliot wave theory

Financial management, Financial Management On the other hand a financi...

Financial Management On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:

How society's interests can influence financial managers, Describe how soci...

Describe how society's interests can influence financial managers. Occasionally the interests of a business firm's owners are not similar as the interests of society.  For exam

Advantages of investment in shares, Advantages of Investment in Shares ...

Advantages of Investment in Shares 1. Income in form of dividends When you contain shares of a company then you become a part-owner of such company and hence you will be

What is dependency ratio and why is it important, Question 1: a) What ...

Question 1: a) What is dependency ratio and why is it important for pensions? b) For which types of schemes is dependency ratio mostly relevant? Explain c) What is the

Time value of money, Compute the future value of $2,500 compounded annually...

Compute the future value of $2,500 compounded annually for 10 years at 6%

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