Financial Market Homework Essay Example | Topics and Well Written Essays - 750 words

Financial Market Homework - Essay ExampleFinancial markets are usually divided into capital markets and money markets. The capital market involves diversify of pine term finance (Robert, 2009). This includes stock market, which facilitates financing through issuing stocks and also exchange of stock ownership and the money market which facilitates debt financing and enthronisation (Rose, 1994). Currently the financial sector has additional markets to facilitate financing such as commodity markets derivatives market, futures markets and foreign markets.Financial markets provide borrowers with funds to facilitate their apparelments (such as corporations and government institutions to obtain funds in order to finance their current operations or to finance expansion and growth) (Wurgler, 2000). It also provides the lenders a platform to gestate their surplus funds in productive way (such as financial institutions that have excess funds to lend on short term and long term basis), faci litates credit creation (usually done by commercial banks through issuance of loans), provides liquidity to institutions and government organizations and promotes nest egg culture (the commercial banks provides financial savings services)In Qatar, the financial market is controlled by Qatar Investment Authority (QIA). This is the serves as the states sovereign wealth fund that specializes in both local anesthetic and international investments. Usually QIA manages the financial surpluses from oil and natural gas companies (which run into millions of dollars) Additionally, Qatar Holding, a branch of QIA that is in charge of international investment, receives more than $30 meg from the state. These funds are invested internationally in Europe, Asia Pacific, and United statesIt is estimated that QIA has assets worth over $170 billion (Hall, Kerr & Hammond, 2013). This value is expected to increase as the country continues to invest in expansion