|
Conclusion
To sum up, it is true that the importance of financial markets have been increasing over the world since all types of businesses need a place where they can sell or purchase financial instruments in order to either gain extra funds or invest their savings. A developed capital market contributes to the growth of wealth, for example, through more profitable investments. Moreover, it enables a more efficient flow of funds between operating entities. The market exists because of the savings that can be invested on it. The emergence of numerous financial innovations will change the structure of the financial market. In today’s financial market, there is no longer any difficulty of access to different segments of the financial market in each country. Globalization, liberalization, computerization as well as improved management techniques have reduced the level of financial expenses. They have thus enabled a wider group of customers to be given individual care. ggggggg
In recent years, interest in alternative investments in the securities market has increased. Enrichment of different groups in society has an impact on the growth in demand for innovations that would offer more opportunities to invest funds for entities willing to take risks. It should be assumed that with the increasing affluence of society and globalization of international financial markets, alternative forms of investment will become more widely available in Uzbekistan. Ffffffffff
There are many things that financial markets make possible, including the following:
Financial markets provide a place where participants like investors and debtors, regardless of their size, will receive fair and proper treatment.
They provide individuals, companies, and government organizations with access to capital.
Financial markets help lower the unemployment rate because of the many job opportunities it offers
Financial markets match buyers and sellers or lenders to buyers at a given time and reflect the performance of the economy. Demand and supply are a function of the market. Businesses need capital to grow and to expand their respective business thus, where the financial market plays a critical role in the buildup of capital and the production of goods and services providing access to capital. In a well-developed and efficient market, the transaction costs are always lower with efficient transfer of funds; it can be mean also a lower cost of financing and a safe return on investment. In developing countries, which have limited financial market, the poor legal system, transparency may make it more costly to raise capital and may lower the return on savings or investments Vis a Vis the risk. A good financial market helps in the creation of wealth and provides a link between savings and investment that meet the short-term and long-term financial needs of both the household and corporate sector through efficient mobilization and allocation of surplus.
Macroeconomic factors mentioned such as growth, inflation, business cycles, have a strong impact on the financial markets. Financial structures fund businesses and companies, contributing to job growth and, in turn, growing economic development and trade. Increased trade leads to increased competition, such as sales and marketing that increase jobs in these sectors further. Whether it is primary, secondary and tertiary sectors all need capital for growth, and the need for capital is balanced by the financial system. Security is a right on the issuer’s future income/profits or assets. Usually, financial markets are characterized by transparent pricing, simple trading rules, costs and fees, and market forces that decide the prices of securities that sell. Financial markets affect the opinion of the public and provide an outline of the economic landscape. A continuous rise in stock exchanges such as Nifty/BSE gives confidence to the businesses. In such scenarios, businesses hire more employees, decreasing unemployment and in turn producing more disposable income to the common people. In the case of the diminishing market, or in the event of market crashes, business becomes worried about their financing, making layoffs, and panic in the economic ecosystem. Capital markets and institutions such as banks play a key role in the economy by controlling risks and allocating savings to productive activities, facilitating economic development, and enhancing overall welfare while running smoothly. The right mixture of the well-developed financial market and the variety of capital products and resources available better fits the requirements of investors, as well as those who are seeking capital and who has, have excess capital. Thus fueling the engine of the economy or simply capital formation. A sound economy can exist only when there is a well-developed market.
They can provide an opportunity for companies to invest money in shares to build up money for the future. Over a long period of time this can often provide a better return than opening a savings account at your bank.
Do'stlaringiz bilan baham: |
