Posts

Showing posts with the label Financial Markets

Financial Market an Edge in Economic growth

Image
 Having comprehensively reviewed literature from multiple sources, it is established that financial markets have impact on the economic growth of a country. A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. Financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services. The combination of well developed financial markets and institutions, as well as a diverse array of financial products and instruments, suits the needs of borrowers and lenders and therefore the overall economy. Large financial markets with lots of trading activity provide more liquidity for market participants than thinner markets with few available securit

Private capital for infrastructure finance

Image
 If we consider the point of view of a private investor, either a debt or pure equity investor, infrastructure represents an interesting alternative asset class. Infrastructure projects show interesting characteristics vis-à-vis more traditional asset classes. Infrastructure can be financed using different capital channels . The evolution of capital markets shows that financial innovation develops new financial tools able to attract a larger amount of funds in response to supply  Private capital for infrastructure finance An overview of the different alternatives available to private investors.  It first divides the instruments into equity and debt. Equity and debt can be listed and traded on an exchange (public) or unlisted and traded over the counter (OTC; private). In the case of listed equity and market-traded debt we make reference to a traditional investment in listed infrastructure. This is the area where mutual funds and exchange traded funds (ETFs) have developed products to b

The Emergence of Global Finance

Image
The recent renaissance in technology and the increase in globalization, financial markets around the world have become more connected. International trading and investments have increased and businesses find it easier to grow beyond their home countries and participate in global markets. And whether we recognize it or not, global finance affects all of us in some way. The Emergence of Global Finance Global finance is defined as the international framework of economies, regulations, and financial institutions and how these things interact with each other. Global finance covers a range of topics such as financial regulations, exchange rates, investments, trading, and other important topics associated with international financial management. All of which are always in flux. Benefits and Risks of a Global Financial System Crises like the 2008 global financial crash and the COVID-19 pandemic have highlighted some of the weaknesses and vulnerabilities inherent to a global financial system. F