Johnson_II_Sheree_BUS300_Assignment4

Johnson_II_Sheree_BU - Please read Chapter 5 and complete Complete integrated case page 170 5-1 Smyth Barry and Company Part I a Describe the three

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Please read Chapter 5 and complete: Complete integrated case page 170 5-1 Smyth Barry and Company, Part I a. Describe the three primary ways in which capital is transferred between savers and borrowers. The three primary ways in which capital is transferred between savers and borrowers are; Direct transfer, Investment banking house, and financial intermediary b. What is a market? Differentiate between the following types of markets: physical asset versus financial markets, spot versus futures markets, money versus capital markets , primary versus secondary markets, and public versus private markets. Financial markets facilitate the exchange of liquid assets. Most investors prefer investing in two markets, the stock markets and the bond markets. NYSE, AMEX, and the NASDAQ are the most common stock markets in the US. Futures markets, where contracts are exchanged regarding the future delivery of goods are often an outgrowth of general commodity markets. Currency markets are used to trade one currency for another, and are often used for speculation on currency exchange rates. The money market is the name for the global market for lending and borrowing. Prediction markets are a type of speculative market in which the goods exchanged are futures on the occurrence of certain events. They apply the market dynamics to facilitate information aggregation. c. Why are financial markets essential for a healthy economy and economic growth? In economics, a financial market is a mechanism that allows people to buy and
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This note was uploaded on 01/16/2011 for the course BUS 300 taught by Professor Wendyachilles during the Spring '10 term at Stratford.

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Johnson_II_Sheree_BU - Please read Chapter 5 and complete Complete integrated case page 170 5-1 Smyth Barry and Company Part I a Describe the three

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