Financial Markets

Introduction, Financial Markets Working in the United States, and Conclusion

Tanya Howard

FIN/370

January 19, 2013

Vicky Gore

Introduction

In 1962, Sam Walton opened his first retail store in Roger, Arkansas (Wal-Mart, 2012). In 1969, Wal-Mart incorporated, making its official company name, Wal-Mart Stores, Inc. (Wal-Mart, 2012). In 1970, Sam Walton made the decision to take Wal-Mart public. By making Wal-Mart public, it meant that Wal-Mart would eventually become part of the New-York Stock Exchange in 1972 (Wal-Mart. 2012). Publicly traded companies are required to uphold certain ethical and compliant duties within the United States Securities Exchange (SEC) regulations. In the next few moments one will understand Wal-Mart financial information; what procedures are in place to ensure ethical behavior is enforced; and how financial markets work in the United States.

Financial Markets in United States

The United States along with other countries, there is a need for financial markets. The financial markets are put into place so there is a way to exchange money and credit. The financial markets in the United States are operated three ways and they are financial institutions, borrowers, and savers (Titman, Keown, Martin, 2011). The borrowers and savers use the financial institutions to do their saving and lending. Financial institutions are such places like commercial banks. A borrower is a person(s) who need money that they currently do not have in order to obtain a purchase needed such as a vehicle or house (Titman, Keown, Martin, 2011). Whereas a saver is, also known as investors and these individuals choose to save money or invest money for needs that may arise in the future. An example of an investor would be someone who purchases a Certificate of Deposit and continues to renew this instrument to gain more monetary funds for a later date. (Titman, Keown, Martin, 2011).

Conclusion

Therefore, in conclusion, in order to understand how profitable a...