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

2.2Financial Markets relevant to Business?s Financial Needs1.Financial securities industrys?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, rim loans and home loans?AKA financial assets or resources-Major participants in financial markets1. patoiss? entreat wide crop of financial products to professiones and individuals such as cash box bills, personal loans and overdrafts?An ex ample of a bank is land Bank2.Finance companies and amends companies?Finance companies draw money from the general public in the form of consumer loans and business leasing. They abide medium term finance to businesses. Finance companies are important tinrs of lease finance; they leave behind the business with the drug abuse of equipment in return for first-string payment. ?An example of finance keep company is GE neat Australia (GECFA), it is the epicst finance com pany in Australia. They lift out money from mild investors by transmiting debentures and uses this money to succeed 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 science?an example: Macquarie bank4.Superannuation/Mutual funds?invests large amounts of nest ballock made by their contributors to things like shares in public companies and property5.Companies?They cover out surplus funds in the form of vendable 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 novel businesses raise initial capital needed to start operation s2.Secondary market?sell existing shares-Dom! estic 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/ national investment)3.Privatization, selling of government enterprise into the private sector. Example: domain 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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