Role of the US Financial System

The U.S. fiscal system is a market for buying and concern of securities in the U.S economy for raising capital for companies in monetary need. Financial markets be generally separated into short-term and long-run markets. The short-term markets name securities with maturities of one year or minuscule and are referred to as money markets. Security markets are part into organized exchanges and over-the-counter markets. The long-term markets are called capital markets and decease of securities having maturities greater than one year. The most common corporate securities in this category are bonds, common stock, preferred stock, and convertible securities. These securities are found on the firm?s balance rupture under the designation long-term liabilities and equities. Taken together, these long-term securities institute the firm?s capital structure. Security markets exist to conserve the allocation of capital among households, corporations, and governmental units, wit h monetary institutions acting as intermediaries. Just as financial institutions specialize in their aid and investments, so are the capital markets divided into many practicable subsets, with each specific market serving a trus 2rthy typecast of security. For providing insight into the role of the U.S. financial system two conditions reach been selected for their unique scenarios in working within the U.S. financial markets.

Companies fecal matter seek to lambaste capital by debut the financial market through initial public offerings (IPO). In 1999 an article was written by Steven Marjanovic ab step to the fore the increasing way out of internet so! ftware firms in the United States that were looking to rig out capital trough IPO?s. If you are not in the (IPO) race and have taken a go-it-alone strategy, youll be go away in the dust, said Gary Craft, director of research at E-Offering Inc., a unit of E-Trade Group (Marjanovic, 1999). Internet companies such as E-loan were seeking to raise capital for $55.2 million in an try to... If you urgency to get a full essay, order it on our website: BestEssayCheap.com

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