Role of the US Financial System

The U.S. pecuniary system is a market for buying and cover of securities in the U.S economy for the purpose of raising uppercase for companies in pecuniary need. Financial markets ar generally separated into short-term 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 dissever into organized exchanges and over-the-counter markets. The long markets are called detonating device markets and consist of securities having maturities greater than one year. The most common material securities in this category are bonds, common stock, preferred stock, and exchangeable securities. These securities are found on the firm?s equilibrium sheet under the designation long-term liabilities and equities. Taken to ascenther, these long-term securities comprise the firm?s capital structure. Security markets await on to aid the allocation of capital among households, corporation s, and governmental units, with fiscal institutions playing as intermediaries. Just as financial institutions fix in their services and investments, so are the capital markets divided into many a(prenominal) functional subsets, with each specific market avail a certain type of security. For the purpose of providing insight into the intention 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 look to get on capital by entering the financial market with initial public offerings ( initial public offering). In 1999 an 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 field in the dust, said Gary Craft, film director of research at E-Offering Inc., a u nit of E-Trade Group (Marjanovic, 1999). cy! berspace companies such as E-loan were seeking to raise capital... If you want to get a practiced essay, order it on our website: OrderEssay.net

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