Prompt: Our course has covered financial markets, instruments and institutions and their roles in the economy...

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Finance

Prompt: Our course has covered financial markets, instrumentsand institutions and their roles in the economy and financialmanagement. Write a paper that discusses financial markets, theinstruments used in those markets and the institutions involved inthe markets. Discuss the biblical passages that apply to financialinstitutions. Include the roles of money, investments and risk.Include a discussion about borrowing and the biblical principlesinvolved in borrowing.
Requirements: 3,500 words minimum

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3.6 Ratings (390 Votes)

Financial market is a broad concept which shows and describe any marketplace where trading is done of securities like bonds Currencies and derivatives etc Some of the financial market is small with the little of the activity The market may not indicate the true intrinsic value of the stock due to the macroeconomic forces like taxes etc The price of the securities is set by the market to show the appropriate transparency of the value of the securities Market is a place where huge numbers of buyers and sellers and come together to buy and sell the shares which are traded on the publicly companies The new issue of the shares are offered to the investors in the primary market Any of the stock securities are traded on the secondary market There are various types of Financial market they are as follows 1OvertheCounter Markets over the counter is the example of the secondary market In this type of market the stock exchange is between the buyer and the seller of the securitiesCompanies who trade on the counter are usually smaller companies as they require less rules and regulation to be traded on OTC markets are essentially used to exchange securities monetary standards subsidiaries and organized items They can likewise be utilized to exchange values with models for example the OTCQX OTCQB and OTC Pink commercial centers before hand the OTC Bulletin Board and Pink Sheets in the US Merchant sellers that work in the US OTC markets are controlled by the Financial Industry Regulatory Authority FINRA OTC markets are ordinarily bifurcated into the client showcase where sellers exchange with their customers for example partnerships and foundations and the interdealer advertise where vendors exchange with one another The value a seller statements to a customer might just vary from the value cited to another vendor and the offer ask spread may likewise be more extensive on account of the previous than in the last mentioned While OTC markets capacity well during typical occasions there is an extra hazard called a counterparty chance that one gathering in the exchange will default preceding the culmination of the exchange and additionally wont make the present and future installments expected of them by the agreement Absence of straightforwardness can likewise make an endless loop create during times of budgetary worry just like the case during the 200708 worldwide credit emergency Home loan supported protections and different subordinates for example CDOs and CMOs which were exchanged exclusively in the OTC markets couldnt be estimated dependably as liquidity completely evaporated without purchasers This brought about an expanding number of vendors pulling back from their marketproduction capacities worsening the liquidity issue and causing an overall credit crunch Among the administrative activities embraced in the result of the emergency to determine this issue was the utilization of clearinghouses for postexchange preparing of OTC exchanges 2Financial Markets for Bonds Bond is a type of security in which the investors borrow the amount of money for a certain period of time with some fixed rate of interest Bonds are not only issued by the companies but also by the government from around the world The bond market sells securities such as notes and bills issued from the United States Treasury The security market is extensively sectioned into two distinct storehouses the essential market and the optional market The essential market is as often as possible alluded to as the new issues showcase in which exchanges carefully happen legitimately between the security guarantors and the security purchasers Generally the essential market yields the production of shiny new obligation protections that have not recently been offered to people in general In the auxiliary market protections that have just been sold in the essential market are then purchased and sold at later dates Speculators can buy these bonds from a representative who goes about as a go between the purchasing and selling parties These optional market issues might be bundled as annuity reserves common assets and life coverage policesamong numerous other item structures 3Money Markets Money market is one of the portion of the financial market that trades the high liquidity with the shot time of duration The main motive of the money market is to Lend the money for a year with short duration The money market trades the certificates of deposit bankers acceptance certain bills notes and commercial paper The currency market has retail stores Your nearby bank is one retail store and the US See Answer

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