This site is about finance and aims to be a help for financial players in the financial markets. The content on this site includes information about financial markets, financial instruments, equity valuation, economics and statistics.
Financial markets exists to enable access to capital in an efficient manner . Financial markets includes both buyers and sellers, individuals and businesses that need capital and individuals and companies who want to invest or get a return on their capital.
Companies need money to invest in equipment , personnel and marketing. These investments are made to increase market share and to increase profitability. Companies are using financial markets to issue financial instruments. Companies issues shares on the stock market. Other common financial instruments that companies can issue are bonds, convertible bonds and warrants. Companies also uses financial instruments in their bonus systems. Options and shares can be good carrots for senior members of the company to perform at their best.
New financial instruments are constantly introduced in the financial market in order to create interest among those who invest their money in financial markets. New financial instruments can provide new relationships between risk and return. Companies also uses financial instruments to hedge against risks. Futures can be used to avoid the risk of currency fluctuations for example.