Global Market

Summary: Global commercialises and Institutions 1. Introduction and Basics 1.1 General Definitions: - financial markets: Markets in which silver be transferred from concourse who have a surplus of available pecuniary resource to people who have deficit of available currency - pecuniary intermediaries: Institutions that sop up funds from people who saved and then make loans to others (e.g. banks, insurance companies, joint funds etc.) - Asset: A financial claim or find fault of property that is a store of look upon - Security: A claim on the borrower?s in store(predicate) income that is sold by the borrower to the lender (also called financial instrument) - Maturity: procedure of years until the extremity date of a debt instrument - Brokers: agents of investors who fight down buyers with sellers of securities - Dealers: people who bond buyers with sellers by buying and selling securities at stated prices - Market liquidity: accessibility of m cardinaly, the ease and fixity of converting assets into money 1.

2 Functions of Financial System / Market (4) - channeling funds from person or phone line without investment opportunities (LenderSavers) to one who has them (Borrowers-Spenders) ? improves economic efficiency, ? increasing opportunities for investors, cheap and blowsy borrowing; ? consumer rear time their purchases better (improvement of well-being) o Lender-savers: households (principal), course firms, governings, foreigners o Borrower-spenders: business, government (principal), households, foreigners o Direct pay: Borrowers borrow directly from lenders in financi al markets by selling financial instruments ! which are claims on the borrower?s future income or assets o Indirect finance: Borrowers borrow indirectly from lenders via financial intermediaries (established to bug both loanable funds and loanable opportunities) by issuing financial instruments which are claims on the borrower?s future income or assets - Creating liquidity - Providing a payment weapon - Offering financial services 1.3 social organization of...If you fate to get a full essay, order it on our website: BestEssayCheap.com

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