The finance field includes markets with diversified functions. Some of these markets assume a funding role and are therefore called upon capital markets and hold the long-term financing financial market and the short-term funding market. The financial market is thus presented as a component of the capital market that allows the financing of the economy. It is the place of emission and exchange of transferable securities, mainly actions and obligations. The stock market or the stock market is the wing of the economy where stock finance activities take place.
The organization and structure of this market:
It is an official and organized market in which foreign transferable exchanges are under the direction of a centralized authority. The operation of the financial market is based on stock market activities. This is where investors in the country and foreign investors invest their money and participate in the purchase and sale of stocks. This trade leads to a huge generation of benefits that is then used by the government and the private sector for various development activities. The government is gaining income funding revenues and it is therefore necessary for the rapid functioning of a country and its economy.
The economic growth of a country can be determined from the amount of foreign direct investment (FDI) received by its stock market. When investors have confidence in a country’s financial possibilities, they invest in this country for long-term returns. Individual citizens of a country can also take advantage of by investing in an intelligent way about the actions of profitable companies and have shown a rapid improvement in their annual balance sheets.
Inventory finance is ideal for grass entrepreneurs who intend to earn money in a short time without having to start their own adventure; They can rather be established businesses sharing holders and reap the benefits. However, it is a very volatile and risky market and investor can also end up losing a considerable amount of their money when the economy is not doing very well. For example, during the recession period, the value of inventories of various Fortune 500 companies decreased by more than 25%, resulting in huge losses for investors. Thus, it is necessary to have a good understanding of the financing of the actions before taking the risk of investing in all actions.