Professional Documents
Culture Documents
1. Allows transfers of funds from person or business without investment opportunities to one who has them 2. Improves economic efficiency
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Financial Markets:
Direct finance: through securities (IOUs) Indirect: intermediaries Saving transaction costs (search) Maturity, Stocks, Dividends (residual claim), Debt, IPOs (underwriting), Brokers, Dealers
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World Stock Markets (U.S. stock markets are no longer the largest) Eurocurrencies deposited outside the home country
Eurodollars (Russia, Middle-East)
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Financial Intermediaries
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Regulatory Agencies
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Regulatory Agencies
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