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Fin 504 Topic 1 DQ 2 - What role do primary financial...

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What role do primary financial markets play in our economy? What role do secondary marketsfill? Describe the relationship that exists between financial institutions and financial markets andsuggest a method in which this relationship can run more smoothly.Support your rationale withat least one citation from the literature.The financial system comprises all financial markets (such astrade stocks or bonds),instruments(from back CDs to futures and derivatives), and institutions (such as pensions, mutual funds, orfrom bank to insurance companies).Financial markets are forums in which suppliers of fundsand demanders of funds can transact business directly (Gitman & Zutter, 2015). Function offinancial markets include: allowing transfers of funds from business or individual withoutinvestment opportunities to one who has them; improves economic efficiency.Financial marketsplay a vital role in the accumulation of capital and the production of goods and services.
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