Financial Markets and Institutions (2-downloads)

Transaction costs, the time and money spent in carrying out financial transactions,

are a major problem for people who have excess funds to lend. As we have seen, Carl

the carpenter needs $1,000 for his new tool, and you know that it is an excellent

investment opportunity. You have the cash and would like to lend him the money,

but to protect your investment, you have to hire a lawyer to write up the loan con-

tract that specifies how much interest Carl will pay you, when he will make these

interest payments, and when he will repay you the $1,000. Obtaining the contract

22

Part 1 Introduction

http://quote.yahoo

.com/m2?u

Access major world stock

indexes, with charts, news,

and components.

G O   O N L I N E

http://stockcharts.com/

def/servlet/Favorites

.CServlet?obj=msummary&

cmd=show&disp=SXA

This site contains historical

stock market index charts

for many countries around

the world.

G O   O N L I N E

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