Is it selling bonds and stocks?
Also, what is the price that a financial market determines?
2007-03-09 05:48:22 · 2 answers · asked by ohok 2 in Social Science ➔ Economics
A financial market trades use of capital. This means financial markets can be the bond market, stock market, and banks that lend money.
In a financial market, individuals with extra capital use it to purchase stock, which is buying a piece of a business, buying a bond, which is loaning money to a business, or depositing it in a bank, which in turn loans it to some entity. Thus, financial markets ultimately trade use of capital.
The price of this is the interest rate or rate of return. The interest rate and rate of return vary depending upon the risk. Savings accounts are relatively safe, so they pay little, while a bond to the Ford Company probably would pay much more since there is more risk associated with it.
2007-03-09 06:02:23 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
"The foreign exchange (currency or forex or FX) market ... is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The trade happening in the forex markets across the globe currently exceeds $1.9 trillion/day (on average)."
For comparision the US GDP is $12 trillion and the total market cap of all US stocks is a little over $30 trillion
http://en.wikipedia.org/wiki/Foreign_exchange_market
Within the US, Repos (repurchases agreement on U.S. Treasuries) which are used by the Fed to control interest rates and to settle accounts between banks at the close of each business day, probably accounts for the most trade in $ amounts. http://en.wikipedia.org/wiki/Repurchase_agreement
2007-03-09 07:45:42 · answer #2 · answered by meg 7 · 1⤊ 1⤋
If rising debt is giving you sleepless nights and you can not seem to manage the extra money that you need to pay towards your loan, then trading in stocks is a convenient investment solution that may surely help you. Since it is a highly profitable investment option you will be able to opt for debt reduction. You would already know that if you have incurred huge amounts of debt, then debt collection agencies make calls repeatedly to harass you. If you do not want this situation to persist then it is very important for you to think about debt reduction You must think about earning money quickly.
2015-02-02 15:34:19 · answer #3 · answered by ? 3 · 11⤊ 0⤋
risk
2007-03-09 12:16:02 · answer #4 · answered by a_liberal_economist 3 · 0⤊ 0⤋