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About the Financial Markets




A broad term that describes any market where buyers and sellers involved in the trade of assets such as stocks, bonds, currencies and derivatives. Financial markets are usually defined as having price transparency, basic rules on trade costs and fees and market forces determine the prices of securities that trade.
 

Some financial markets
 

They only allow participants to meet certain criteria, which may be based on factors such as the amount of money held, the geographical location of investors, market knowledge and profession of participants.
 

Investopedia says:
 

Financial markets can be found in almost every nation in the world. Some are very small, with only a few participants, while others - like the New York Stock Exchange (NYSE) and the currency markets - trillions of dollars trade journals.
 

Most financial markets
 

Have periods of heavy trading and demand for securities in such periods, prices can rise above historic norms. The reverse is true - the recession could cause prices to fall earlier levels of intrinsic value, based on low levels of demand or other macroeconomic forces such as tax rates, domestic production or employment levels.

Transparency
 

The information is important to increase the confidence of participants and therefore promote an efficient financial market.

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