Financial Markets and Institutions
This paper provides answers to several questions relating to financial markets and institutions. Topics include how capital is transferred from savers to borrows, the different types of markets, economic growth, market efficiency, the use of derivatives, the different kinds of financial institutions, and how stocks are traded.
A What are the three primary ways in which capital is transferredbetween savers and borrowers Describe each one The three primary ways that capital... more
A What are the three primary ways in which capital is transferredbetween savers and borrowers Describe each one The three primary ways that capital can be transferred between saversand borrowers are direct transfers indirect transfers throughinvestment bankers and indirect transfers through a financialintermediary Brigham Houston p In a direct transfer acompany sells its stocks or bonds directly to savers The money provided bythe saver is received directly by the company This type of transfer isgenerally found among smaller firms In an indirect