Today, LTG Goldrock will share with you what the functions of the financial market are ~
Simply put, it has four major functions: 1. Financing 2. Adjustment 3. Aversion 4. Signal
1.The financial market can quickly and effectively guide the rational flow of funds and improve the efficiency of capital allocation .
(1) Expand the opportunity to contact both parties in funds, facilitate financial transactions , reduce financing cost , and improve the efficiency of funds.
(2) The financial market has opened a broader financing channel for funders and investors.
(3) The financial market provides necessary conditions for the conversion of various financial instruments in various periods and contents.
2.The financial market has a pricing function. The fluctuation and change of the financial market price is the barometer of economic activities .
(1) Financial assets all have tickets .
(2) Internal value of corporate assets -The value of corporate debt and the value of shareholders' rights -only, only through financial market transactionsThe process of action can be "discovered".That is to say, the company's related financial assets must be valued by the price formed by the market exchange as the basis, rather than simply calculate the book numbers of the accounting statement .
(3) The pricing function of the financial market also depends on the improvement of the market and the efficiency of the market.
(4) The pricing function of the financial market helps the market resource allocation function.
3.The financial market provides conditions for the financial management department to conduct indirect financial regulation .
(1) Financial indirect regulation system must rely on developed financial markets to conduct policy signals of central banks , and guide the behavior of micro -economic entities through the price change of the financial market adjustment adjustmentintention.
(2) Internal financial market system , there is a high correlation between the various sub -markets .
(3) With the increase of various types of financial assets in financial institutions and liquidity preparation ratio , financial institutions will be more widely involved in the operation of the financial market. Central Bank indirectly indirectlyThe scope and intensity of regulation will be continuously strengthened with the development of the financial market.
4.The development of the financial market can promote the innovation of financial instruments.
(1) Financial instruments are a standardized contract that combines expected income and risks.
(2) Diverse financial instruments By making more fine division of risks in the economy in the economy, investors with different preferences for risks and income can seek the most input of investment in their needs.
(3) Diversified financial instruments can also meet the diversified needs of financiers as much as possible.
5.The financial market helps to achieve scattered risks and risk transfer .
(1) The development of the financial market has prompted residents' diversification of financial assets and diversified financial risks.
(2) The development of financial markets has opened the way for residents' investment , diversified financial assets, and diversified bank risks, and provided conditions for sustainable economic and stable economic development.
(3) Residents have enhanced investment awareness and risk awareness by selecting a variety of financial assets and flexible adjustment of the remaining currency.
6.The financial market can reduce the search cost of transactions and information cost .
(1) Search costs refer to the cost generated by finding a suitable transaction.
(2) The cost of information is the cost that occurs in the process of evaluating the value of financial assets.
(3) The functions of helping to reduce search and information costs are mainly played through professional financial institutions and consulting institutions.
