Fianance

The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not

Financial commercial paper is issued by large financial institutions. In contrast to asset-backed commercial paper, financial commercial paper is issued by the institution directly and not via a conduit. Also, financial commercial paper is unsecured and the issuer does not pledge assets as collateral. Financial commercial paper is considered a low-risk asset because of its short maturity and the fact that its issuers are large institutions with strong balance sheets. (2010, Page 34)

A partnership is a business that has 2 or more people working in it like Starbucks is a business that is in a partnership. The advantages are you have more capita available to you and the company you have combined skills with other workers simple to set up you have tax advantages the disadvantages are unlimited liability you have to share your profit with the other owners you can have conflicts with owners or workers that do not agree partnership ends to death and possible

The organization and characteristics of a specific market where a company operates is referred to as market structure. While markets can basically be classified by their degree of competitiveness and pricing, there are four types of markets i.e. perfect competition, monopolistic competition, monopoly, and oligopoly. In perfect competition markets, many firms are price takers whereas monopolistic competition markets are characterized by the ability of some firms to have market power. In contrast, oligopoly markets are those in which few firms can be price makers while monopoly market is where one firm can be a price maker.

In Figure 1 we see that the market and how it is broken up into different areas including internal process, external process, deliberate, and

L. Financial securities are physical papers that work like a written contract when some borrows from someone. Some financial instruments are short-term loans, treasury bills, banker’s acceptances, commercial paper, CD, Eurodollar deposits, corporate bonds, and municipal bonds.

A partnership is a business organization where the partners own the business together and are

Generally speaking there is no specific place or location to indicate a financial markets, wherever a financial transaction takes place it is deemed to have taken place in the financial market, financial market are widespread in nature since financial transaction are themselves pervasive throughout the economic system. For instance, issue of equity shares, granting of loans by lending institutions, deposit of money into a bank, purchase of debentures, sale of shares so on.

While checking on the advantages of partnership form of business, it is believed that it is the easiest form of business to form as it only requires voluntary agreement between the partners and the business can be formed. The agreement is not in a fixed form, can be written or oral making if easier and flexible while forming it. This indicates that there are few legal formalities required during the formation hence fewer resources used. Since it involves many partners, there is expectation of high initial capital as compared to other forms of business. This high capital leads to increased scale of operation for the business which raises its profits. (Goldsmith, 2006) The limited partners if included in the partnership assist in investing the business from outside the business hence marketing their business as well as maintaining a competitive advantage. This form of business incorporates different skills and experts from different fields when they partner to come up with one business. This improves the management of the business from various skilled people.

* Commercial paper is an unsecured short-term debt instrument issued by a corporation. On average, maturities range from 1 to 2 months and are usually no longer

5. Privately placed securities are usually sold to one or more investment bankers and then resold to the general public.

Money markets are the markets for short-term, highly liquid debt securities, whereas capital markets are the markets for intermediate-or long-term, debt and corporate.

Market is an actual or nominal place that forces of demand and supply operate (Challet, 1997), under this situation, buyers and sellers interact directly or through intermediaries to trade goods and services. Market including mechanisms or means for determining price of the traded item and available goods and services (cox, ibid.). Communicating the full price information. Facilitating deals and transactions, and effecting distribution. The market for particular items is made up of potential customers who need these goods and services and have the ability and willingness to pay for it.

Trade has been boosted internationally as markets in America are connected with their counterparts in Canada, Europe, etc. Computers based algorithms in HFTs allow a proprietary firm to trade in various market and dark pools at a go. The global trade has been intensified with over 60% of the financial trades being carried out by use of HFT. As this increases, competition is also increased and more and more traders are able to access markets which were previously untapped.

Usually owned by independent firms whose business is making a market Generate revenue by charging transaction fees Usually serve a single vertical industry Number of exchanges has fallen to around 700 in 2003