Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability. Stability. Market Stability is important. Given that market behavior is dependent on a lot of factors, the risk is very high., Most of the players failed to survive because their ability to forecast and to mitigate the market risk. In the financial market, the impact of financial risk is something that the regulatory environment should consider. The regulation must be able to protect the interest of the clients as well as the companies to enable their corporate sustainability. QUESTION: Explain further what "stability" means. How do laws control stability in financial markets? Explain. Then identify the risks that arise from it.
Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability.
Stability. Market Stability is important. Given that market behavior is dependent on a lot of factors, the risk is very high., Most of the players failed to survive because their ability to
QUESTION:
Explain further what "stability" means. How do laws control stability in financial markets? Explain. Then identify the risks that arise from it.
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