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BUSN (with MindTap Business, 1 Term (6 Months) Printed Access Card) (MindTap Course List)
11th Edition
ISBN: 9781337407120
Author: Marcella Kelly, Chuck Williams
Publisher: Cengage Learning
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Question
Chapter 10, Problem 1LO
Summary Introduction
To discuss: The role of the financial market in the Country U economy and identify the key players in these markets.
Financial market is the market where firms can trade the financial securities, commodities, at low transaction costs and at prices that reflect supply and demand.
Expert Solution & Answer
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Explanation of Solution
The role of the financial market in Country U’s economy is as follows:
- To support institutional investors with their investments
- To develop long-term financing solutions
- To connect issuers with investors
- To minimize business risk and hedging against interest rate or currency risk.
- To help in the growth of the capital market
- To enhance infrastructure growth
- To develop trade
- To increase the employment rate.
Following are the key players in the financial market:
- Investors
- Brokers
- Dealers
- Mutual funds
- Investment banks
- Market makers
- Stock exchanges
- Depositories
- Clearinghouses
- The federal reserve
- Rating agency
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Chapter 10 Solutions
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