Role of the US Financial System

The U.S. pecuniary system is a market for buying and handle of securities in the U.S economy for the purpose of raising uppercase for companies in pecuniary need. Financial markets are generally separated into short and long-run markets. The short-term markets comprise securities with maturities of one year or less and are referred to as money markets. Security markets are divided up into organized exchanges and over-the-counter markets. The long-run markets are called upper-case letter markets and consist of securities having maturities greater than one year. The most common bodily securities in this category are bonds, common stock, preferred stock, and transformable securities. These securities are found on the firm?s residual sheet under the designation long-term liabilities and equities. Taken to stomachher, these long-term securities comprise the firm?s capital structure. Security markets make it on to aid the allocation of capital among households, corpor ations, and governmental units, with monetary institutions playing as intermediaries. Just as financial institutions narrow down in their services and investments, so are the capital markets divided into many a(prenominal) functional subsets, with each specific market service of process a certain type of security. For the purpose of providing insight into the role of the U.S. financial system two articles have been selected for their unique scenarios in on the job(p) within the U.S. financial markets.

Article OneCompanies can examine to get on capital by entering the financial market with initial public off erings ( initial public offering). In 1999 a! n article was written by Steven Marjanovic about the increasing modus operandi of internet software firms in the United States that were looking to raise capital through IPO?s. If you are not in the (IPO) race and have interpreted a go-it-alone strategy, youll be left in the dust, said Gary Craft, film director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). cyberspace companies such as E-loan were seeking to raise capital... If you want to get a blanket(a) essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper