Evaluating Stock Market Movements

Evaluating Stock Market Movements

Modern financial market represents a very complicated structure with many participants. The main members of the financial market are persons or financial establishments, enterprises or companies having surplus of means – they form the first group. The second group includes subjects of managing who require means. Thus interaction of these groups creates the financial market. As any other market it also has buyers and sellers, those /who are able to help to buy or sell (so called financial intermediaries) and commodities which they want to buy or sell. But the commodity is a special one - it is cash or means which can be on sale or given in use for a certain time. The main role of the financial market is to place interested sellers and buyers in a due place and make it easier for them to find each other. The financial market is an institute which provides a link between lenders and borrowers (lenders give money for borrowers). Lending money by means of issuing shares or other securities is very popular now (Steven Valdez)

The financial establishments in various countries differ much on size, activity kind, given services specter. But they regulate and contribute to economics development and international ties. It provides transfer of means in space and time as well as territorial movement of resources. Through the financial market persons whether firms lend their cash not needed for a short period of time to make extra money by giving it via short term for other people or companies which are now lack of means. The financial market carries out redistribution of risks which accompany enterprise activity.

The financial markets are divided into the following markets: capital markets include both stock (it provides financing by issuing shares and other securities) and bond markets (issuing and trading of bonds), commodity markets (facilitate trading of commodities), money markets (deals with short-term borrowing...