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In a financial market, the demand is caused largely by speculative factor where when people see stock rises, they would expect it to rise further therefore demanding more of that good, which in turn does make it higher (due to high demand and fixed short run supply.) The same thing happen when the stock prices decrease, people expect it to decrease further and so sell their stocks in which will make the price goes down (due to increased supply and reduced demand.)
What else can I help you with?
Why do markets develop?
Demand is the answer-demand for products brings movers and shakers into play which causes a market to develope.
How financial markets operate?
Financial markets operate when buyers and sellers trade financial securities, stock, bonds, commodities, foreign exchange at a value that reflect supply and demand. Financial markets are a place where capital of a business raises, company's risk is reduced and investors make money.
What is the Importance of financial markets in financial system?
Financial markets are important because they allow economic growth by offering liquidity, and this liquidity allows markets to get bigger because it allows demand to be expressed very fluidly and without a very large spread (difference between bid and ask prices). Without this liquidity markets would be at a near stand still and economic growth would be very slow as demand would take a very long time to be expressed.
How have those markets generated demand?
How have those markets generated demand?
How would you describe financial markets?
Financial markets are platforms where buyers and sellers engage in the exchange of financial assets, such as stocks, bonds, currencies, and derivatives. They facilitate the allocation of resources and capital, helping to determine prices based on supply and demand dynamics. These markets play a crucial role in the economy by enabling investment, risk management, and liquidity, while also providing information about economic conditions. Overall, financial markets are essential for promoting economic growth and stability.
How Importance of financial institutions and markets?
financial institution and financial markets are playing important roles in business inviornent
In general the financial markets provide a vehicle for?
in general the financial markets provide a vehicle for
Who is the Minister of Financial Markets for Sweden?
Peter Norman is the Minister of Financial Markets for Sweden.
Why were overseas markets good for the sporting and athletic goods industry?
Overseas markets were a source of new demand because of expanding economies and liberalized trade regulations, although the Asian financial crisis was spurring imports.
What are roles of financial market in Tanzania?
Financial markets have an important role in Tanzania. The markets have helped with the trade market, foreign exchange, and stock markets. The financial markets also provide people a place to invest.
When did Markets in Financial Instruments Directive happen?
Markets in Financial Instruments Directive happened in 2004.
What is the purpose of financial?
The Purpose of Financial Markets
