2.2Financial Markets relevant to Business?s Financial Needs1.Financial merchandises?places where fiscal products atomic number 18 bought and exchange?an suit of a monetary product is marge loans2.Financial securities?contracts such(prenominal) as sh ar certificate, patois loans and home loans?AKA monetary assets or resources-Major participants in financial markets1. bevels? turn wide crop of financial products to professiones and individuals such as till crests, personal loans and overdrafts?An example of a bank is land Bank2.Finance companies and restitution companies?Finance companies draw cash from the general public in the form of consumer loans and business leasing. They contain medium term finance to businesses. Finance companies are valuable tinrs of lease finance; they take into account the business with the drug debase of equipment in return for unshakable payment. ?An example of finance hold company is GE with child(p) Australia (GECFA), it is the largerst finance company in Australia. They lift out specie from little investors by transmiting debentures and uses this silver to nominate consumer credits and small business loans?Insurance companies determine businesses against risks and they to a fault stomach surplus funds in the business3.Merchant Banks?offer co-operate financial advice to large businesses?they also help businesses canary bird capital required for attainment?an example: Macquarie bank4.Superannuation/Mutual funds?invests large amounts of nest clump made by their contributors to things identical shares in public companies and property5.Companies?They convey out surplus funds in the form of saleable securities such as bill of exchange of invests surplus on a short-term specie market. ?an example: David Jones6.
Government (Reserve Bank of Australia)?they provide overall supervision of the financial system in Australia-Role of Australian Stock Exchange (ASX)1.Primary market?help new businesses fire initial capital take to start operations2.Secondary market? cuckold existing shares-Domestic and international influences and trends and their implications on the business?s financial needs1.Impact of globalization, one global economy2.Interest rates, two international and home(prenominal) (foreign/domestic investment)3.Privatization, interchange of government enterprise into the hole-and-corner(a) sector. Example: Commonwealth Bank REFERENCES:1. HSC Business Studies, If you want to master a ample essay, shape it on our website: Orderessay
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