Financial Markets Assignment Example | Topics and Well Written Essays - 1000 words

Financial Markets - Assignment Exampleoney markets which entail bond markets and stock markets, money markets, commodity markets, amends markets among others (Bhole & Mahakud 2009, p.2). The financial market is crucialfor the success of the feares encompassed in a given economy. Every business utilizes particularised financial instruments in their operations. The document below analyzes 1 PM PLC, a British company on the basis of its financial aspects.Numerous financial markets have cropped up in the modern world of business. The financial instruments that are in existence in the common modern markets raise be broadly separate into equity and debt based financial instruments. The debt-based financial instruments represent loans made by a given investor to the additions owner. In others words, it entails the businesses borrowing money from financial institutions. It has some benefits to the investors as well as disadvantages. The or so significant benefit of the debt based fina ncial instruments is that unlike the equity-based financial instruments, the entrepreneur retains the sole control of the first step (Howells & Bain 2007, p.5). This implies that the investors will be entitled to share profits and as well as have the say run the business towards their direction of choice. When the entrepreneur is need of the cash, acquiring the cash do not seem a problem. However, it can sometimes lead to conflict somewhere along the way since it has to be repaid as per the laid shovel in terms and conditions.Foreign exchange is another type of financial instrument being utilized in the modern business. However, this has limitation to the businesses which transact businesses internationally. The most prominent financial instrument in the world right away is the equity market or the stock market. Most of the companies and enterprises are making use of this market to see their financial needs. It can be defined as an aggregation of buyers as well as sellers of st ocks also termed as shares (Bhole & Mahakud 2009, p.3). They