Role of the US Financial System

The U.S. fiscal system is a market for buying and duty of securities in the U.S economy for raising capital for companies in pecuniary need. Financial markets be generally separated into short-term and long markets. The short-term markets name securities with maturities of one year or minuscular and be referred to as money markets. Security markets are appoint into organized exchanges and over-the-counter markets. The long-term markets are called capital markets and fit of securities having maturities greater than one year. The most common corporate securities in this category are bonds, common stock, preferred stock, and convertible securities. These securities are found on the firm?s balance scintilla under the designation long-term liabilities and equities. Taken together, these long-term securities even off the firm?s capital structure. Security markets exist to wield the allocation of capital among households, corporations, and governmental units, with financ ial institutions acting as intermediaries. Just as financial institutions specialize in their usefulness and investments, so are the capital markets divided into many working(a) subsets, with each specific market serving a trus 2rthy instance of security. For providing insight into the role of the U.S. financial system two binds look at been selected for their unique scenarios in working within the U.S. financial markets.

Companies rear seek to lambaste capital by debut the financial market through initial public offerings (IPO). In 1999 an article was written by Steven Marjanovic ab out the increasing way out of in ternet software firms in the United States t! hat were looking to agitate capital trough IPO?s. If you are not in the (IPO) race and have taken a go-it-alone strategy, youll be go away in the dust, said Gary Craft, director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). Internet companies such as E-loan were seeking to raise capital for $55.2 million in an causal agency to... If you urgency to get a full essay, order it on our website: OrderCustomPaper.com

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