 |
Team building
|
Below is one of our free research papers on Team building. If the term paper below is not exactly what you're looking for, you can search our essay database for other topics.
14-1. What are financial markets? What function do they perform? How would an economy be worse off without them?
Financial markets are institutions and procedures that facilitate transactions in all types of financial securities Examples are stocks, bonds, mutual funds. They serve to distribute the savings supply in the economy to the demanders of the savings. If the financial markets did not exist, the wealth of the economy would decrease and the rate of capital formation would not be as high. 14-3. Distinguish between the money and capital markets. The primary difference between money and capital markets is maturity period of the securities traded in them. The money market handles transactions within the short-term credit instruments while the capital market handles transactions in long-term financial instruments. Typically, a maturity period above one year would be categorized long-term, and less than one year would be categorized short-term. 14-4. What major benefits do corporations and investors enjoy because of the existence of organized security exchanges? Corporations and investors enjoy three main benefits from organized security exchanges. The first is a continuous market, which leads to continuous security prices. It also establishes and publishes fair security prices based on supply and demand rather than bargaining. Organized security exchanges also help business’ raise new capital because the secondary market makes it easier for firms to float new se...
|