Management and Organizational Studies 3310A Chapter Notes - Chapter 2: Trust Company, Government Debt, Sovereign Default

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3310A
• Professor: Bill Dawson

Document Summary

2. 1 the importance of financial markets and institutions. Financial markets and institutions are critical to the success of business. Businesses have to go to financial markets and institutions for the financing they need to grow. When they have surplus cash, they have to invest in bank accounts or in securities. A modern financial system offers financing in many different forms. Financial market: a market in which securities are issued and traded. Primary market: a new issue of stocks or bonds is known as a primary issue. The market where these are traded is the primary market. Secondary market: the purchase and sale of existing securities is known as a secondary transaction. The market where this happens is called the secondary market. Stock markets are also called equity markets, since shareholders are said to own the common equity of the firm. The toronto stock exchange (tsx) is the main stock exchange for trading shares of large.