“বৃষ্টিতে ছাউনী হব
রোদে ছাতা হব
সমুদ্রে দ্বীপ হব
ঝড়ে ঘর হব
গ্রীষ্মে সমীরন হব
শীতে চাদর হব
ভোরে শিশির হব
তিমিরে আলো হব”
>>>>>>কথা গুলো অনেক কমোন হঠাৎ করেই এল অন্য কোথাও হয়ত পড়েছি বা শুনেছি, সে যাই হোক আপনাদের কাছে অনুরোধ একে আরও সুন্দর ও নির্ভুল করে তোলা।
What is it?
The financial system allows funds to be circulated among different groups of people. Those groups are may define as savers, investors, and intermediaries.
It allows the transfer of money between savers and borrowers. That is the flow of funds depends on the financial system.
The Functions of Financial system;
There are many functions of the financial system. Among them;
There are three components of the financial system.
Let’s take have a short description of the above three components of this system;
1. Financial Institutions or Financial Intermediaries:
An intermediary is a matchmaker between surplus units and deficit units. They transfer funds to borrowers from savers. The classic example of a financial intermediary is a bank that consolidates deposits and uses the fund to transform them into loans. (Wiki)
Major types of Financial institutions;
2. Financial Market:
It is a market for the creation and exchange of financial assets. Or in other words, a market in which people and entities can trade financial securities, commodities. The financial market is not a physical market place rather it is the system that allows trading those financial assets.
The most common financial markets are; Money Market and Capital Market
Money markets have two components Local currency market and the Foreign currency market.
Capital Market consists of the Debt market and Equity Markets
3. Financial Assets:
A financial asset is an intangible asset that represents the value because of a contractual claim.
Primary (Ordinary Shares, Preference Share, Debenture, Innovative Debt Instruments) Indirect and Derivatives (Forward, Future and Option) those are the main category of Financial Assets.
Reference: Wikipedia, Investopedia, Answer
Well! you are here to know why people invest? Yes, that is the same reason why you reading this line. That is getting a benefit or expecting benefit from some sort of activity. Maybe reading a blog or maybe eating a pizza.
According to Finance or Accounting terms “expecting a larger amount in future by doing some activities from the current.”
Why we expect a higher return in future? One word can define all; “Inflation“.
We may recall the time value of money. Today One Dollar is more powerful than tomorrow. It defines today anyone can purchase more commodities by One Dollar than tomorrow.
People give us $ 100 today expect to consume $ 105 or more of goods and service in future.
The current commitment of these saving (whose consumption is lower than income) for a period of time to derive a rate of return that compensates for the time involved, the expected rate of inflation, and the uncertainty.
This is another common questions I found mostly from my friends and family. Well those are the most reasons you should invest in stocks;
