Name and describe at least two roles that financial markets play in the economy
1) | The financial markets provide the companies money through the sale of securities like bonds and stocks. | ||||||||||
A company can expand its operation through what is known as an Initial public offering (I.P.O). These | |||||||||||
financial markets are known as capital markets and help companies raise money through the issue of | |||||||||||
stocks and bonds. | |||||||||||
2) | Stock markets are the financial markets where investors can invest their money in publicly traded companies. | ||||||||||
Stock markets provide publicly traded companies access to capital. |
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