Term Paper on Financial Market

Financial
Market Term Paper:

Financial market is the complex of the exchange and distributive relations connected with the processes of the purchase and sale of the financial resources required for the producing and financial activity. The exchange relations are based on the fact that the subject of the relations gives the right for the temporary or permanent possession over the selected financial resources to another subject of the operation for the certain definite price. The exchange with the resources is possible through the mediators (banks, investment funds, etc) or in the direct way. Most often the exchange is conducted in the direct way, which is characterized with the exchange of goods and services for the definite price between the subjects of the financial relations. When certain mediators are involved into the financial operations, the process is understood as the financial redistribution of the resources. Financial market plays a very important role for the world economics.

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Financial market is the supply parent structure for the finance of the subjects of business and is treated like the basis of the financial system. Their financial activity begins from the formation of the resources. Financial market serves for the supply of the companies and all types of business with the required conditions for the involvement of the capital and sale of the temporary free resources. As a result, financial markets play the role of the customer and vendor at the same time. Financial markets are the major elements of the capitalism economic system, when the greater part of the financial resources is mobilized by the subjects of business relations on the basis of sale and purchase.

Financial market is the major element of the complicated system of economics, because it maintains the processes of supply and demand, involves capital on the market, etc. The student has the chance to observe the issue in detail dwelling on the explanation of financial markets, their role in business and global economics in the whole and it advantages and disadvantages. The student should study the problem from all sides in order to define the role of financial markets and understand their complicated structure and the manner of their organization. The young person is able to observe the topic on financial markets and think about their further development and impact on the global economics.

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