Financial Markets and Institutions

Financial Markets and Institutions In a global market when one country goes through an economic recession it can have drastic effects on the rest of the world. When the United States had a financial melt down it affect every country around the world. The financial crisis hurt the value of the dollar and it affect the way we trade and do business around the world. The financial institution that is having the greatest effect on our economic condition is the Investment Banks. Investment Banks are the Commercial side and involve underwriting issues of debt and equity, Mergers and Acquisitions, and corporate restructuring or advisement. Investment Banks directly effect how business are created and expand. Investment Banks help businesses grow and be profitable in the global market, they give out loans for businesses to get started and they also help merge businesses together to become more profitable. When Investment Banks don’t lend out money to start business or invest in other markets it potentially puts the entire economy and global business on hold. At the same time Investment Banks can help the US and Europe get out of this financial crisis. When an Investment bank lends money and invests in global markets it creates trade and new jobs for people. The more trading that is going on the more money that is being made and global markets thrive. I believe that future trends and financial markets that will expand in the near future are Money Markets. Money Markets, short-term debt instruments are issued by economic units that require short-term funds and are purchased by economic units that have excess short-term funds. Once issued money market instruments trade in secondary markets. Money Markets are needed because of the immediate cash needs of individuals, corporations and governments do not coincide with their receipts of cash. I think they will expand mainly because of their high rate of interest (return), they are very liquid, have low