Financial Markets
Channels funds
Facilitates the movement
of funds from those who save
money to those who invest
money.
Consist of agents, brokers,
institutions, and intermediaries
transacting purchases and sales
of securities.
Stock market, bond
market, derivatives market,
commodities market, etc.
A place where financial
institutions interact with
individuals to exchange
financial instruments.
Financial Institutions
Make up a financial
system.
Suppliers and
demanders of funds.
Contribute to
economic growth of a
country
A firm that operated in both
sides of the markets for financial
capital.
Provide a convenient place
where savers can safely invest
money and consumers can easily
borrow funds.
Act as agents, brokers, and
intermediaries in financial
transactions.
Investment banks,
commercial banks, governmentsponsored mortgage lenders,
insurance companies, etc.
Companies that provide
services to the individual
participants of the financial
market.