Question

Name and describe at least two roles that financial markets play in the economy

Name and describe at least two roles that financial markets play in the economy

Homework Answers

Answer #1
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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