Financial Markets And The New York Stock Exchange

Financial markets can have several different meaning to many people. They are found all over the world. Some are small and some are large. For example, the New York Stock Exchange, which trade trillions of dollars daily. A financial market is a place where buyers and sellers trade financial securities and other assets.Here, the groups of agents meet to exchange their goods or services. The first group is referred to as lenders, while the second group is referred to as the borrowers of funds. Financial markets typically have â€Å"transparent pricing, basic regulations and governing bodies, costs and fee and prices determine by supply and demand.† If the demand remains steady, the supply increases as the prices decline and vice versa. If the supply remains steady, the demand rises as the prices rises and vice versa (Ireland, 2013). The two most important financial markets in the U.S. economy are the bond market and stock markets (Ireland, 2013). A bond is a certificate of indebtedness that explains the borrower’s obligation to the individual that hold the bond. It specifies the date the loan is to be repaid and the interest rate that will be paid until the loan matures. A stock market is a claim of partial ownership in a firm and therefore a share of the profits that the firm makes. The firms pay a portion of their profits as dividends to its stockholders (Ireland, 2013). There are three characteristics of bonds: The time between when the bond is issue and when it matures isShow MoreRelatedTypes Of Stock : A Stock911 Words   |  4 PagesINTRODUCTION: A stock is a share in ownership of a company. A shareholder is a holder of stock who has a claim to part of the corporation’s assets and earnings. Stocks allow you to own a percentage of a public corporation s earnings and assets. There are two main types of stock: common, which allows you to vote at shareholders’ meetings, and preferred, which doesn’t. 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