Role of the US Financial System

The U.S. fiscal system is a market for buying and barter of securities in the U.S economy for raising capital for companies in monetary need. Financial markets be generally separated into short-term and semipermanent markets. The short-term markets name securities with maturities of one year or slight and ar referred to as money markets. Security markets are carve up into organized exchanges and over-the-counter markets. The long-term markets are called capital markets and confront of securities having maturities greater than one year. The most common corporate securities in this category are bonds, common stock, preferred stock, and convertible securities. These securities are found on the firm?s balance rag week under the designation long-term liabilities and equities. Taken together, these long-term securities be the firm?s capital structure. Security markets exist to abet the allocation of capital among households, corporations, and governmental units, with fisc al institutions acting as intermediaries. Just as financial institutions specialize in their profit and investments, so are the capital markets divided into many practicable subsets, with each specific market serving a trus 2rthy face of security. For providing insight into the role of the U.S. financial system two terms choose been selected for their unique scenarios in working within the U.S. financial markets. Companies merchantman seek to lambaste capital by debut the financial market through initial public offerings (IPO). In 1999 an article was written by Steven Marjanovic ab bug out the increasing way out of internet software firms in the United States that were looking to abstract capital trough IPO?s. If you are not in the (IPO) race and have taken a go-it-alone strategy, youll be go away in the dust, said Gary Craft, director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). Internet companies such as E-loan were seeking to raise capi tal for $55.2 million in an sweat to... ! If you urgency to get a full essay, order it on our website: BestEssayCheap.com

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