Finance is the life blood of economies in the world as it deals with investments, financial assets, currency and stock markets among other things. It encompasses financial services offered by both public and private finance. Public finance includes government expenditure, taxation and budgets while private finance deals with corporate and personal finance.
There are different finance houses in economies such as banks, microfinance companies and stock exchanges. Financial innovation brought up different products into the systems for example mortgages, retirement planning, online foreign exchange markets and online gaming such as maplecasino. Financial markets move billions of US dollars across the world, especially on stock exchange markets.
Every government regulates its financial market in order to avoid market failures due to dubious financial practices with can be undertaken within the economy. Some financial instruments can be sold on both money and capital markets. Money markets only deal with short financial instrument with a life span of 0 – 1 year. On the other hand, capital markets deal with financial instruments with a life span of 1 year and above. [Read more…]