Fin/ 370 Financial Markets Work in the United States

Explain how financial markets work in the United States

Financial markets are places where buyers and sellers come together and trade assets such as the equities of a company. Bonds are also a large part of the United States financial markets. The large financial market in the United States is the New York Stock Exchange. The New York Stock Exchange is the place where trillions of dollars are traded every day. The financial markets in the United States are going to have periods of high trade volume as well as periods of low trade volume. When there are periods of trade volume, the prices of the stocks are going to rise because the demand for those particular stocks is going up. When there is a low demand for a particular stock, the price is going to go down. Companies use the financial markets to grow their business. When a company needs money to expand and grow their business, they will put up some of their shares of the company to bring money in to fund a new project. Investors on the other hand, are looking for stocks that are going to make them money. When a company puts their shares up for money, the investors buy them and hope that later on down the line those shares are going to make them money. If the stock market works out the way that it is supposed to, the companies as well as the investors are both going to get what they want out of the deal. The financial markets in the United States are a place where companies as well as investors go to make money.