Equity Market

Market Organization and Structure

The functions of the financial system

1. the achievement of the purposes for which people uses the financial system
   1. to ** save ** money for the future
   2. to ** borrow ** money for current uses
   3. to ** raise equity capital **
   4. to ** manage risks**
   5. to ** exchange assets for immediate and future deliveries **
   6. to ** trade information **
2. the discovery of the rates of return that equate aggregate savings with aggregate borrowings
3. the allocation of capital to the best uses

Classification of assets

primary market: the markets in which companies and governments raise capital
secondary market:

Market Indices

Market Efficiency