Financial markets Essay Example | Topics and Well Written Essays - 750 words

Financial markets - Essay ExampleFinancial markets form integrity of the pecuniary systems that perform an important economic function by providing a channel of funds from the savers to the spenders or the borrowers that contribute to the economic efficiency. Savers use less coin than the incomes while the borrowers wish to sped use more money than their income, which ensures that borrower who want to investor is able to undertake out an investment despite less income by selling bonds to the savers (Mishkin, 2012).The pecuniary market is closely regulated promoting safety in the fund channeling from the savers to the borrowers encouraging a large estimate of institutions to the markets because they feel secure increasing efficiency in the financial markets. Consequently, increased security in the financial markets translates to the overall economic efficiency. Additionally, financial markets improve consumers well-being because it allows them to schedule and time purchases bette r, which contribute towards the overall parsimoniousness efficiency in a country and from a global perspective.i. Capital markets trade long stipulation securities in which the institutions as well as the individuals trade financial securities (Bacha & Mirakhor, 2013). The capital markets ensure that financial resources atomic number 18 equally distributed across Qatar. They includeA number of securities are traded in the Qatars financial markets including Sukuk or Islamic bonds, shares/common stock, commodities, derivatives, and currencies. Islamic bonds are bonds that are not meant to for conventional interests, but help in the development of innovative assets that comply with Islamic law. Oil and gas are the main commodities in the Qatars commodity market.b) Diversified and broad platform of investment Financial markets such as stock commutation cristal a wider investment opportunity that lead to the economic development in Qatar. Various companies offer diversified types of securities hence,