2.2 Financial Markets relevant to Business's Financial Needs + Business Summaries

2.2Financial Markets relevant to Business?s Financial Needs1.Financial merchandises?places where pecuniary products atomic number 18 bought and sold?an suit of a monetary product is marge loans2.Financial securities?contracts such as sh ar certificate, vernacular loans and home loans?AKA financial assets or resources-Major participants in financial markets1. cashboxs? offering wide crop of financial products to professiones and individuals such as edge bills, personal loans and overdrafts?An ex rich of a bank is land Bank2.Finance companies and indemnification companies?Finance companies draw notes from the general public in the form of consumer loans and business leasing. They abide medium term support to businesses. Finance companies are important tinrs of lease finance; they set up the business with the drug abuse of equipment in return for lawful payment. ?An example of finance keep company is GE working capital Australia (GECFA), it is the vastst finance company in Australia. They lift out money from undersize investors by transmiting debentures and uses this money to generate consumer credits and small business loans?Insurance companies insure businesses against risks and they to a fault provide surplus funds in the business3.Merchant Banks?offer co-operate financial advice to large businesses?they also help businesses sneak capital required for skill?an example: Macquarie bank4.Superannuation/Mutual funds?invests large amounts of nest lump made by their contributors to things like shares in public companies and property5.Companies?They happen out surplus funds in the form of marketable securities such as bill of exchange of invests surplus on a short-term money market. ?an example: David Jones6.

Government (Reserve Bank of Australia)?they provide overall supervision of the financial system in Australia-Role of Australian Stock Exchange (ASX)1.Primary market?help clean businesses raise initial capital needed to start operations2.Secondary market?sell existing shares-Domestic and international influences and trends and their implications on the business?s financial needs1.Impact of globalization, one global economy2.Interest rates, both international and home(prenominal) (foreign/ interior(prenominal) investment)3.Privatization, selling of government enterprise into the private sector. Example: demesne Bank REFERENCES:1. HSC Business Studies, If you want to get a ample essay, order it on our website: BestEssayCheap.com

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