explain the difference between Financial institutions and financial markets
Financial institution: it's provide the financial services or monetary services to it's clients.
Example: Banking and insurance services including the deposit, investment , loans and currency exchange etc.
Financial institution operate in financial markets and financial instruments is a Monterey contract between party. Financial instruments are brought and sold by the financial institutions.
Financial instruments: Bonds, share, deposit, investment, Mutual funds and etc..
Financial markets: in financial markets, Financial institution are brought and sold the financial instruments.
Two types of market:
1. Regulated markets: NYSE , Borsa Italiana
2. Over the counter: in OTC, instruments are corporate bond, foreign exchange. Here financial instruments traded directly between two parties.
Financial markets are dividend into two markets
Primary and secondary markets:
Primary market: financial instruments newly issued by borrower
Secondary market: financial instruments are already existence and lenders are traded the existence instruments.
explain the difference between Financial institutions and financial markets
Discuss the function of financial institutions and financial markets? ( please explain in simple words)
If financial markets were perfect and costless, would there be a need for financial institutions? Explain your answer.
A financial system consists of both financial institutions and financial markets. Financial markets bring the “key players” together and their funds. For this discussion, choose one of the functions of the financial markets and discuss how financial institutions play a role in this process.
A financial system consists of both financial institutions and financial markets. Financial markets bring the “key players” together and their funds. For this discussion, choose one of the functions of the financial markets and discuss how financial institutions play a role in this process.
Explain the effect the Federal Reserve's policies have on financial markets, institutions and interest rates.
Discuss why financial institutions cannot be fully replaced by financial markets or face-to-face interactions between borrowers and savers. Where appropriate, indicate how the phenomenon of asymmetric information creates conflicting interests among the involved parties and what the potential solutions could be.
Explain, providing examples the difference between: a) primary and secondary markets; b) money market and capital markets; c) equities and fixed income securities; d) technical and fundamental analysts in financial markets
If international capital markets are well integrated and operate efficiently, will financial institutions be exposed to foreign exchange risk? What are the sources of foreign exchange risk for financial institutions?
Due to globalization, financial institutions operate in foreign markets or with foreign currencies. Discuss the foreign exchange risks faced by financial institutions.
Explain the difference between primary and secondary markets and why secondary markets are so important to businesses that need to raise capital? Give examples from the real world?