How_Money_Works_-_The_Facts_Visually_Explained
PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets 5958 How it works The forex market provides a service to individuals, ...
Broker Public Primary and secondary markets In order for shares to be bought and sold, there needs to be a market where they can ...
60 61 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets THIRD AND FOURTH MARKETS How it works The primary market is whe ...
Predicting market changes Being able to predict what might happen in the stock market is extremely useful to investors looking t ...
62 63 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets GLOBAL DATA ANALYSIS Asian markets open up to 8 hours ahead of ...
Transatlantic trades When a company is listed on both the UK and US exchanges, arbitrage may be possible. For example, if a trad ...
64 65 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets How it works Arbitrage is the practice of buying a tradeable as ...
Manipulating the stock market How it works A trader can manipulate the market by processing a lot of small sell orders in an att ...
66 67 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets THE LIBOR SCANDAL Manipulation can affect other areas of the ma ...
Day trading Liquid shares Day traders favor shares that are liquid—those that are easy to buy and sell in the secondary market. ...
68 69 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial markets By 10am, the bid price has risen to $500. The trader sells, mak ...
Receives interest on loans, which it invests Receives premiums, which it $ $ invests for interest and growth $ $ IN VESTMENT IN ...
70 71 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial institutions 7170 Invests cash from deposits and interest payments Prof ...
Commercial and mortgage banks Banks make money by lending out money and charging interest on it. They also pay interest—at a low ...
72 73 Attracting new customers It is cheaper and easier for banks to sell products to existing customers—a practice known as cro ...
Investment banks Areas of business While the brokerage and corporate advising divisions of an investment bank are theoretically ...
74 75 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial institutions Bringing companies to market Investment banks can raise fu ...
Brokerages The broker’s role When an investor wishes to sell some of their shares, they first contact their broker and ask them ...
76 77 PROFIT-MAKING AND FINANCIAL INSTITUTIONS Financial institutions $ $ Buys for $420 $20 Seller Contacts broker, who may prov ...
How it works Insurance mitigates risks that can be quantified and anticipated as potentially or possibly likely to happen. All t ...
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