Abstract
Financial centres are the physical location where capital markets are organized. Financial centres and capital markets are neither a cancer on the real economy nor are they simply providers of an alternative funding mechanism for local firms and governments. Financial systems serve to:
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pool savings and transform them into investment in plant and people
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discipline management, thus reducing the principal/agent problem
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allow the aggregation and trading of risk
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provide the information necessary for effective capital and risk allocation.
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© 2000 Werner G. Seifert, Ann-Kristin Achleitner, Frank Mattern, Clara C. Streit and Hans-Joachim Voth
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Seifert, W.G., Achleitner, AK., Mattern, F., Streit, C.C., Voth, HJ. (2000). Introduction. In: European Capital Markets. Palgrave Macmillan, London. https://doi.org/10.1057/9780230287068_1
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DOI: https://doi.org/10.1057/9780230287068_1
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-42512-9
Online ISBN: 978-0-230-28706-8
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