Sunday, July 28, 2019

Financial markets Essay Example | Topics and Well Written Essays - 750 words

Financial markets - Essay Example Financial markets form one of the financial systems that perform an important economic function by providing a channel of funds from the savers to the spenders or the borrowers that contribute to the economic efficiency. Savers use less money than the incomes while the borrowers wish to sped use more money than their income, which ensures that borrower who want to investor is able to undertake out an investment despite less income by selling bonds to the savers (Mishkin, 2012). The financial market is closely regulated promoting safety in the fund channeling from the savers to the borrowers encouraging a large number of institutions to the markets because they feel secure increasing efficiency in the financial markets. Consequently, increased security in the financial markets translates to the overall economic efficiency. Additionally, financial markets improve consumers’ well-being because it allows them to schedule and time purchases better, which contribute towards the overall economy efficiency in a country and from a global perspective. i. Capital markets trade long term securities in which the institutions as well as the individuals trade financial securities (Bacha & Mirakhor, 2013). The capital markets ensure that financial resources are equally distributed across Qatar. They include A number of securities are traded in the Qatar’s financial markets including Sukuk or Islamic bonds, shares/common stock, commodities, derivatives, and currencies. Islamic bonds are bonds that are not meant to for conventional interests, but help in the development of innovative assets that comply with Islamic law. Oil and gas are the main commodities in the Qatar’s commodity market. b) Diversified and broad platform of investment: Financial markets such as stock exchange offer a wider investment opportunity that lead to the economic development in Qatar. Various companies offer diversified types of securities; hence,

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