Sample on Financial Markets

Sample on Financial Markets Essay on Financial Markets Feb 4, 2019 in Business The Role of Financial Markets in Creating Wealth Financial markets play a crucial role in creating economic wealth in the United States of America. A well-functioning financial sector creates incentives for investment and forester trading and help in the creation of business linkages. In fact, financial markets can be used as an indicator of how an economy is fairing (Ritter Silber, 2004). Financial market creates wealth by transforming savings into investments which translates to investment incomes. Financial market mobilizes savings for productive investments and facilitates capital inflows. This stimulates investment both in human and physical resources. It is also the role of financial market to channel Americans savings to more productive uses by analyzing and collecting information about investment opportunities in the economy (Ritter Silber, 2004).