Business Finance

Business Finance.

1) Describe how the financial markets work based on your understanding?

2) What is a financial intermediary and who can act as financial intermediaries?

3). What is the difference between a hedge fund and a mutual fund?

4) What are the two principle types of private equity firms?

250 words

Answer preview

Describe how the financial markets work based on your understanding?

            A financial market is a place where buyers and sellers enter into contracts for specific products like stock and bonds. It is a place where investment takes place. The buyers in the market anticipate buying the products at the lowest prices possible in order to sell at the highest price possible. Buyers and sellers are aided by professionals to trade their products thus there are regulations that should be met in order to ensure and guarantee safety in the markets (Fabozzi, 2009)…………..

WORD COUNT:378WORDS

FORMAT:APA