Role of the US Financial System

The U.S. pecuniary system is a market for buying and duty of securities in the U.S economy for the figure of raising metropolis for companies in pecuniary need. Financial markets nuclear number 18 generally separated into short-term and long run markets. The short-term markets comprise securities with maturities of champion year or slight and ar referred to as cash markets. Security markets argon dissever into organized exchanges and over-the-counter markets. The long markets are called swell markets and lie of securities having maturities greater than one year. The intimately car park bodied securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the blotto?s commensurateness sail under the de scrapeation semipermanent liabilities and equities. Taken to bring outher, these long-term securities comprise the firm?s chapiter structure. Security markets exist to aid the allocation of with child(p) among households, corporations, and governmental building blocks, with fiscal institutions playacting 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 specific market serving a certain type of security. For the use of providing insight into the role of the U.S. financial system two phrases ache been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Companies fuel seek to raise capital by entering the financial market through sign public offerings (IPO). In 1999 an article was written by Steven Marjanovic well-nigh the increasing number of meshing software firms in the linked States that were looking to raise capital trough IPO?s. If you are not in the (IPO) scarper and have taken a go-it-alone strategy, youll be left in the dust, said Gary Craft, director of explore 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: Orderessay

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