Role of the US Financial System

The U.S. pecuniary system is a market for buying and dispense of securities in the U.S economy for the purpose of raising uppercase for companies in monetary need. Financial markets atomic outlet 18 generally separated into short-term and long-run markets. The short-term markets comprise securities with maturities of one year or less and are referred to as money markets. Security markets are divided up into organized exchanges and over-the-counter markets. The long-term markets are called bully markets and consist of securities having maturities greater than one year. The most common tangible securities in this category are bonds, common stock, preferred stock, and exchangeable securities. These securities are found on the firm?s equaliser sheet under the designation long-term liabilities and equities. Taken to gether, these long-term securities comprise the firm?s capital structure. Security markets come through on to aid the allocation of capital among househo lds, corporations, and governmental units, with financial institutions playing as intermediaries. Just as financial institutions particularize in their services and investments, so are the capital markets divided into many a(prenominal) functional subsets, with each specific market do a certain type of security. For the purpose of providing insight into the utilisation of the U.S. financial system two articles have been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Article OneCompanies can essay to get on capital by entering the financial market with initial public o fferings ( initial public offering). In 1999! an article was written by Steven Marjanovic about the increasing number of internet software firms in the United States that were looking to raise capital through IPO?s. If you are not in the (IPO) race and have interpreted a go-it-alone strategy, youll be leftover in the dust, said Gary Craft, film director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). cyberspace companies such as E-loan were seeking to raise capital... If you want to get a enough essay, order it on our website: OrderCustomPaper.com

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