Equity Market
Market Organization and Structure
The functions of the financial system
- the achievement of the purposes for which people uses the financial system
- to ** save ** money for the future
- to ** borrow ** money for current uses
- to ** raise equity capital **
- to ** manage risks**
- to ** exchange assets for immediate and future deliveries **
- to ** trade information **
- the discovery of the rates of return that equate aggregate savings with aggregate borrowings
- the allocation of capital to the best uses
Classification of assets
primary market: the markets in which companies and governments raise capital
secondary market:
