1.

Are You Aware Of The Term ‘securities’ And ‘securities Markets’?

Answer»

Securities are financial instruments issued to raise funds. The primary function of the securities MARKETS is to enable to flow of capital from those that have it to those that need it. Securities market help in transfer of resources from those with idle resources to others who have a productive need for them.

Securities markets provide channels for allocation of savings to investments and thereby decouple these two activities. As a result, the savers and investors are not constrained by their INDIVIDUAL abilities, but by the ECONOMY’s abilities to invest and save respectively, which INEVITABLY enhances savings and investment in the economy.

Securities are financial instruments issued to raise funds. The primary function of the securities markets is to enable to flow of capital from those that have it to those that need it. Securities market help in transfer of resources from those with idle resources to others who have a productive need for them.

Securities markets provide channels for allocation of savings to investments and thereby decouple these two activities. As a result, the savers and investors are not constrained by their individual abilities, but by the economy’s abilities to invest and save respectively, which inevitably enhances savings and investment in the economy.



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