Role of the US Financial System

The U.S. pecuniary system is a market for buying and barter of securities in the U.S economy for the plan of raising metropolis for companies in pecuniary need. Financial markets atomic number 18 primarily separated into short-term and long-run markets. The short-term markets comprise securities with maturities of matchless year or less and ar referred to as bills 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 closely popular bodied securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the riotous?s commensurateness sheet under the designation long liabilities and equities. Taken to bring outher, these long-term securities comprise the firm?s large(p) structure. Security markets equal to aid the allocation of working bang-up amo ng households, corporations, and governmental social units, with financial institutions acting as intermediaries. Just as financial institutions specialize in their services and investments, so are the capital markets divided into umteen functional subsets, with each precise market serving a certain type of security. For the purpose of providing insight into the role of the U.S. financial system two obliges tolerate been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Companies stool seek to raise capital by entering the financial market through sign public offerings ( IPO). In 1999 an article was written by Stev! en Marjanovic well-nigh the increasing number of net income software firms in the linked States that were looking to raise capital trough IPO?s. If you are not in the (IPO) hunt 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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