A financial market is one where securities are issued and traded. Savings flow through financial markets and intermediaries (mutual funds, exchangetraded funds, pension funds, banks and insurance companies) to provide financing for individuals, corporations or other organizations. Mutual funds, exchange-traded funds and pension funds allow investors to diversify in professionally managed portfolios. Financial markets provide liquidity and diversification opportunities for investors, as well as information regarding prices, interest rates and values. A company’s cost of capital is the rate of return an investor could earn in financial markets on an investment of similar risk. The existence of financial markets allow individuals and corporations to maximize value. Importance of financial markets and institutions emphasized during the Crisis of 20072009.
Fundamentals of corporate finance canadian 6th edition brealey solutions manual
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