CFIN
CFIN
6th Edition
ISBN: 9780357144039
Author: BESLEY
Publisher: CENGAGE L
Question
100%
Book Icon
Chapter 3, Problem 1PROB
Summary Introduction

Financial markets are the markets or the place where financial instruments like equities, bonds, derivatives, currencies, and precious metals are traded among buyers and sellers. These markets represent the mechanisms by which investors and debtors are brought together.

Expert Solution & Answer
Check Mark

Explanation of Solution

The following are the ways in which financial markets run freely and efficiently, and affect the standard of living in a country.

In financial markets, an investor gets an opportunity to make a choice to select the available investment securities which give high returns with low risk.

In financial markets, a borrower can get the optimum terms for his debt or borrowings with respect to his need and credit worthiness.

Financial intermediaries in the financial markets such are banks, credit unions, etc., collect deposits from investors and provide loans to individuals and firms those required. These intermediaries bring together investors and borrowers as efficiently as they currently do.

Financial markets provide an opportunity for foreign investors through foreign direct investment which makes more investments for small organizations and helps in increasing employment.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Assume an investor buys a share of stock for $18 at t = 0 and at the end of the next year (t = 1) , he buys 12 shares with a unit price of $9 per share. At the end of Year 2 (t = 2) , the investor sells all shares for $40 per share. At the end of each year in the holding period, the stock paid a $5.00 per share dividend. What is the annual time-weighted rate of return?
Please don't use Ai solution
A flowchart that depicts the relationships among the input, processing, and output of an AIS is A. a system flowchart. B. a program flowchart. C. an internal control flowchart. D. a document flowchart.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Entrepreneurial Finance
Finance
ISBN:9781337635653
Author:Leach
Publisher:Cengage
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning