To some, stock market investments make the primary component of an individual retirement portfolio. Enterprises and enterprises become noticeable when they access the stock market with the intention of raising capital for strategic and operational purposes. Stock markets trends have an influence on consumer and corporate willingness to invest thereby controlling United States economy (Arbogast, 2013). By facilitating, trades between companies, consumers and other companies. The stock market provides a platform for growing companies to raise capital at s lower cot which allows them to be less dependent on the bank financing. This positively affects. The economic growth by helping firms to raise capital. The purpose of this assignment
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Their function is to match borrowers and lenders taking financial assistance offered by depositors or investors and distributing those funds to people and organizations that have opportunities for higher potential returns (Fishback, 2008). Borrowers often seek financial assistance from banks in the form of loans for significant periods, and there is some degree of credit risk that is applied in the process. What the bank does is it draws funds from a broad range of depositors and lends it to the potential borrowers knowing that the investors will not demand their money for a set period. Besides, banks also use money from depositors to invest in diverse portfolios including bonds, stocks and real estate among …show more content…
Moreover, the stock market offers a bigger rate and market share for the organization in question because a wide platform is attained. Additionally, it helps firm's content information to be easily accessed as they have a wide platform that is following their services. In a significant way, the stock market creates a richer financial history and the history of thought; hence, it allows economists and the public understand what is happening in the economy. Thus, it should be noted that despite the fact that banks offer loans to borrowers, they do not guarantee wealth, but only offer liquidity meant to create positive results if those involved utilize the funds
Their function is to match borrowers and lenders taking financial assistance offered by depositors or investors and distributing those funds to people and organizations that have opportunities for higher potential returns (Fishback, 2008). Borrowers often seek financial assistance from banks in the form of loans for significant periods, and there is some degree of credit risk that is applied in the process. What the bank does is it draws funds from a broad range of depositors and lends it to the potential borrowers knowing that the investors will not demand their money for a set period. Besides, banks also use money from depositors to invest in diverse portfolios including bonds, stocks and real estate among …show more content…
Moreover, the stock market offers a bigger rate and market share for the organization in question because a wide platform is attained. Additionally, it helps firm's content information to be easily accessed as they have a wide platform that is following their services. In a significant way, the stock market creates a richer financial history and the history of thought; hence, it allows economists and the public understand what is happening in the economy. Thus, it should be noted that despite the fact that banks offer loans to borrowers, they do not guarantee wealth, but only offer liquidity meant to create positive results if those involved utilize the funds