Several Aspects of Exchange Rate in the UK

Jorion has claimed that in a circumstance whereby an industrial corporation plunges into bankruptcy, the creditors, bondholders, and other shareholders suffer huge financial losses. However, the direct stakeholders feel the impact of the failure the most. With this brief description, Jorion then went ahead to give a comprehensive definition of the financial institutions. In his definition, he claims that the financial institutions are Commercial banks involved primarily in holding the customer deposits and extending credit to governments, households, and businesses. Insurance companies involved in providing life insurance coverage or property and casualty (P&amp.C) coverage. and the Securities houses involved primarily in the intermediation in securities markets. The examples of these securities houses are: Investment banks, which are specialized in the primary markets in the first sale of securities, Broker-dealers involved primarily in aiding the sale of securities in the secondary markets.
Economists define a market as an arrangement or an institution whose primary function is to facilitate the sale and the purchase of goods and services, as well as other things. Consequently, a financial market is an arrangement or an institution whose primary function is to facilitate the process through which the financial instruments are exchanged. These financial instruments being exchanged include government bonds, corporate bonds, and stocks, loans, deposits, as well as the more exotic instruments like the future contracts and options. In other words, a financial market is a market whereby such financial instruments as securities, assets, and financial claims are traded. The transactions of a financial market may occur at either a particular location or place. For instance, stock exchange, or maybe conducted via other mechanisms like electronic media, telex, and telephone. In this case, the price for using investible funds is normally the interest charged on the transacted funds.