Share
Explore BrainMass

FINANCIAL MARKET EXPERIENCE

About a personal experience with a financial market. Identify your need for the financial market and the process of selecting an intermediary-including criteria used in the selection. Discuss any barriers or unusual circumstances that were part of the experience, and if you consider your process repeatable as executed or requiring modification for better results.

Solution Preview

From the point of general public, the primary need of financial market is to avail investment opportunities in different kinds of financial assets like equities, debt instruments, futures,etc. A well developed financial market ensures that people have ample investment options in the economy.

Similarly, for corporations, financial markets are an indispensable resource to raise funds in the form of equity financing, debt capital,etc.

The textbooks tell us that the role of the financial system is to intermediate between lenders and borrowers, providing a menu of saving vehicles with differing risk and return characteristics, and helping investors find the financing they need, taking into account the returns and risks on the projects they wish to undertake. In carrying out their functions, financial intermediaries reduce transactions costs for savers and investors and help reduce problems of asymmetric information that are inherent in the ...

Solution Summary

About a personal experience with a financial market. Identify your need for the financial market and the process of selecting an intermediary-including criteria used in the selection. Discuss any barriers or unusual circumstances that were part of the experience, and if you consider your process repeatable as executed or requiring modification for better results.

$2.19