ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Risk Sharing
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Equity Sharing
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Liquidity
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Bond Market
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Detailed explanation-1: -Risk Sharing: Financial markets allow a transfer of risk from those who undertake investments to those who provide funds for those investments. Liquidity: Financial markets provide the holders of financial assets with a chance to resell or liquidate these assets.
Detailed explanation-2: -A call auction, or call market, is where market participants place orders to buy or sell at certain bid or offered (ask) prices, which are then batched together and matched at predetermined time intervals.
Detailed explanation-3: -There are four main types of security: debt securities, equity securities, derivative securities, and hybrid securities, which are a combination of debt and equity.
Detailed explanation-4: -#1 – Price Determination. #2 – Funds Mobilization. #3 – Liquidity. #4 – Risk sharing. #5 – Easy Access. #6 – Reduction in Transaction Costs and Provision of the Information. #7 – Capital Formation.