Role of the US Financial System

The U.S. pecuniary system is a market for buying and obligation of securities in the U.S economy for the spirit of raising metropolis for companies in monetary need. Financial markets atomic number 18 generally separated into short-term and long-run markets. The short-term markets comprise securities with maturities of hotshot year or less and be referred to as bullion markets. Security markets are divided into organized exchanges and over-the-counter markets. The long-run markets are called swell markets and consist of securities having maturities greater than one year. The close park bodied securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the pixilated?s commensurateness sheet under the designation semipermanent liabilities and equities. Taken to bring outher, these long-term securities comprise the firm?s groovy structure. Security markets equal to aid the allocation of crown a mong households, corporations, and governmental unit of measurements, with financial institutions acting as intermediaries. Just as financial institutions specialize in their services and investments, so are the slap-up markets divided into umteen functional subsets, with each particularised market serving a certain type of security. For the purpose of providing insight into the role of the U.S. financial system two phrases retain been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Companies end seek to raise capital by entering the financial market through sign publ ic offerings (IPO). In 1999 an article was w! ritten by Steven Marjanovic well-nigh the increasing number of meshwork software firms in the linked States that were looking to raise capital trough IPO?s. If you are not in the (IPO) festinate and have taken a go-it-alone strategy, youll be left in the dust, said Gary Craft, director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). Internet companies such(prenominal) as E-loan were seeking to raise capital in... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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