Role of the US Financial System

The U.S. pecuniary system is a market for buying and flip of securities in the U.S economy for the purpose of raising uppercase for companies in pecuniary need. Financial markets ar 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 split up into organized exchanges and over-the-counter markets. The semipermanent markets are called big(p) markets and consist of securities having maturities greater than one year. The most common bodied securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the firm?s counterpoise sheet under the designation long-term liabilities and equities. Taken to mountingher, these long-term securities comprise the firm?s capital structure. Security markets be intimate on to aid the allocation of capital among households, corpo rations, and governmental units, with monetary institutions playing as intermediaries. Just as financial institutions qualify in their services and investments, so are the capital markets divided into many a(prenominal) functional subsets, with each specific market parcel a certain type of security. For the purpose of providing insight into the federal agency 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 research to get on capital by entering the financial market with initial public offerin gs ( initial public offering). In 1999 an ar! ticle was written by Steven Marjanovic about the increasing crook 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 left field 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 fully essay, order it on our website: OrderCustomPaper.com

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