Role of the US Financial System

The U.S. pecuniary system is a market for buying and transaction of securities in the U.S economy for the mapping of raising metropolis for companies in monetary need. Financial markets atomic number 18 chiefly separated into short-term and long-run markets. The short-term markets comprise securities with maturities of single year or less and are referred to as bullion markets. Security markets are divided into organized exchanges and over-the-counter markets. The long markets are called swell markets and consist of securities having maturities greater than one year. The most commons bodied securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the stiff?s commensurateness sheet under the designation long liabilities and equities. Taken to bring outher, these long-term securities comprise the firm?s outstanding structure. Security markets equal to aid the allocation of majuscule among h ouseholds, corporations, and governmental units, with financial institutions acting as intermediaries. Just as financial institutions specialize in their services and investments, so are the dandy markets divided into umteen functional subsets, with each special(prenominal) market serving a certain type of security. For the purpose of providing insight into the role of the U.S. financial system two holds take been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Companies lav seek to raise capital by entering the financial market through sign public offerings (IPO). In 1999 an article was written by Steven Marja! novic well-nigh the increasing number of cyberspace software firms in the linked States that were looking to raise capital trough IPO?s. If you are not in the (IPO) take to the woods 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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