Study Document
Financial Markets, Institutions, and Transactions Term Paper
Pages:5 (1581 words)
Sources:5
Subject:Business
Topic:Financial Institution
Document Type:Term Paper
Document:#29051605
While this strategy is effective in some situations, the use of bond markets by an investor requires the development of an effective strategy that will help him/her to achieve a specific financial objective. For an investor seeking to maximize the profit-generating aspects of bonds, the most effective strategy is a passive buy-and-hold bond strategy. As the name suggests, it involves buying individual bonds and holding them until maturity. The effectiveness of this strategy in achieving the stated financial objective is that it lessens or eliminates transaction costs and lessens risks linked to income changes from embedded options.
Conclusion:
Financial markets and institutions play a crucial role in the growth and stability of America's economy as well as global economies. These markets and institutions are characterized with various financial transactions and different types of markets. However, the ability of economic growth and stability is dependent on the effectiveness of the regulatory body.
References:
"Capital Market Transactions." (2013, July 5). Finance Maps of World. Retrieved July 27, 2013,
from http://finance.mapsofworld.com/capital-market/transactions.html
"Centennial Monetary Commission" (n.d.). Kevin Brady's Centennial Monetary Commission Act
(H.R.1176). Retrieved from U.S. House of Representatives website: http://kevinbrady.house.gov/uploads/CMC_HR1176_Summary.pdf
"Factors Influencing Interest Rates" (n.d.). Financial Web - the Independent Financial Portal.
Retrieved July 27, 2013, from http://info.finweb.com/banking-credit/factors-influencing-interest-rates.html#axzz2aDks8GtD
"Forecasting Interest Rates" (2013, June 6). The Financial Pipeline. Retrieved July 27, 2013,
from http://www.finpipe.com/forecasting-interest-rates/
"What is the Purpose of the Federal Reserve System?" (2013, May 23). Board of Governors of the Federal Reserve System. Retrieved from the Federal Reserve website: http://www.federalreserve.gov/faqs/about_12594.htm
Sample Source(s) Used
References:
"Capital Market Transactions." (2013, July 5). Finance Maps of World. Retrieved July 27, 2013,
from http://finance.mapsofworld.com/capital-market/transactions.html
"Centennial Monetary Commission" (n.d.). Kevin Brady's Centennial Monetary Commission Act
(H.R.1176). Retrieved from U.S. House of Representatives website: http://kevinbrady.house.gov/uploads/CMC_HR1176_Summary.pdf
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