Explore BrainMass
Share

Benefits from capital market activity besides intermediation

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Our capital markets were created to bring lenders and borrowers of capital (funds) together in ways that are effective and efficient, a process known as financial intermediation. Besides intermediation, cite and discuss two additional benefits that accrue to society from capital market activities. What are two disadvantages associated with our capital markets?

© BrainMass Inc. brainmass.com October 25, 2018, 3:47 am ad1c9bdddf
https://brainmass.com/business/working-capital-management/benefits-capital-market-activity-intermediation-354125

Solution Preview

Our capital markets were created to bring lenders and borrowers of capital (funds) together in ways that are effective and efficient, a process known as financial intermediation. Besides intermediation, cite and discuss two additional benefits that accrue to society from capital market activities. What are two disadvantages associated with our capital markets?

Capital market consists of

a. Bond market which helps the financing through issuance of bond and its subsequent trading.
b. Stock market which helps the financing through issuance of common stock and its subsequent trading.

Capital market means the market of securities. Here, ...

Solution Summary

The benefits from capital market activity besides intermediates are examined.

$2.19
See Also This Related BrainMass Solution

International Monetary Fund - Globalization

Visit the International Monetary Fund's (IMF) (http://www.imf.org). Click on Publications, then on Periodicals, and then on Finance & Development. In the March 2002 Volume, read the article, "The Globalization of Finance," written by Gerd Hausler, Counselor and Director of the IMF's International Capital Markets Department.

Please answer the following questions -

? How is financial globalization is affected by the following?
a. Deregulation
b. Capital mobility
c. The introduction of common currencies
d. The formation of economic communities and trading blocs

? How have the Internet and technological advances in computing power and communications affected the following?
a. The provision of domestic and global banking products and services
b. The degree of competition in the world's financial markets
c. Domestic and global financial system reform

? How is regulatory reform
a. an important element by itself in reshaping the financial services landscape?
b. a reaction to the other forces of change affecting financial markets?

View Full Posting Details