Financial Markets

Abstract

Financial markets — where money is lent, borrowed, invested and transferred — play an essential part in all other businesses.

• If a big firm wants to buy thousands of shares in another company, perhaps with the final aim of making a takeover bid, it will contact a market maker, who deals in shares, on a stock exchange.

• If an airline wants to insure its fleet of aircraft, it will approach an insurance broker at Lloyd’s of London.

• If a company wants to raise millions of £s to invest in a new factory, it will contact a bank.