CHAPTER 1
What Are Financial Markets?
This chapter will provide the financial markets foundation, terminology and context to discuss the dynamics of the trading floor. The first step is to realize that every time a financial transaction occurs between two or more parties it has ramifications in the financial markets. Parties on one side of the transaction may include individuals investing in their pensions, saving up for a rainy day or buying insurance. Most of this retail activity gets funneled through larger financial companies such as pension funds, banks, insurance companies and asset managers, which are the main investors in the financial markets. On the other side of many financial transactions are the entities that need money and raise ...
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