Business Communications

14.1 What are financial grocerys? In its simplest form, financial markets are whatsoever type of financial transaction that helps businesses grow and investors make money. It is the commonplace or generic term for the markets in which financial instruments are traded. Financial instruments have no intrinsic value of themselves. They map a claim over true assets or a future income stream. The four main financial markets are the unusual exchange market, the fixed interest or bond market, the office or equity market and the derivatives market. What function do they realize? Financial markets stick out structured access to individuals and corporations to different market categories in which they can pitch capital and generate profit. They provide the context for financial transactions between businesses and investors. Essentially, their function is to facilitate the exchange of capital and credit between parties. How would an economy be worse off without them? Without Financial markets there would be slight regulation and stimulation in the economy in some(prenominal) the public and private sector. Without sufficient regulation ethical issues yield hold; abuse in the markets would occur, such as what happened in the real estate market.

Also, companies that help stimulate the economy through jobs and measure revenue may suffer from a lack of resources to raise dead and long term funds. The economy would no extended be protected by a credible fomite for the exchange of capital and credit and therefore would be to a greater extent vulnerable to collapse. 14.3 Distinguish between the money and capital markets. basically the difference between the capital markets and money markets is that capital markets are for long term investments in which companies are selling stocks and bonds in order to assume money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing or lending market where banks borrow and lend between each other, as well... If you want to get a full essay, order it on our website: Ordercustompaper.com

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