Financial Markets

Who are financial markets between?

From lender-savers to borrowers-spenders so they can meet and operate 

Who are the participants of financial markets?

Businesses and markets

Advantages of financial markets?

- They improve the economic welfare of everyone in the society allowing people to time their purchases better

-Critical for producing an efficient location of capital, allowing funds to move from people who lack productive investments opportunities to those that have them

What are stakeholders?

Those who buy shares in order to seek gain financially they are described as residual owners meaning they are only entitled to what is left after employees , suppliers and creditors are paid back so for them to be doing well growing financially other groups are as well.

What are shareholders objectives in a financial market?

That the financial manager acts in the shareholders best interest by making decisions that increase the value of a company's equity/ shares another way of saying this if there are no shares is then objective is to maximise market value of existing owners equity