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Volume :8 Issue : 1 1980      Add To Cart                                                                    Download

The Financial Market in Jordan Development And Optentials

Auther : A.D.ISSA

The basic impetus for the creation and development of financial markets is the dichotomy between saving and investing functions. In an economy where all the constituent economic units are self-sufficient, i.e.. They finance all their potential investments internally; there will be no need for a financial market. In most modern economices, however, such is not the case. Here some economic units tent to generate more is saving than they desire to invest internally while others save less than they need to meet their planned investment requirements. The net result is the emergence of two groups of economic units the surplus the deficit the transfer of excess funds from surplus to deficit economics units or from investors to borrowers. Financial assets are, are a result, issued by deficit units in exchange for the funds borrowed. In order to perform this exchange prowess efficiently, financial market must have a locative guide and a transfer mechanism. In market economics, the main a locative guide is the productivity of capital. According to this guide, surplus funds are channeled to those investment possibilities promising the highest yield. The transfer process, on the other hand, is performed mainly by a network of financial institution that varies in its complexity and sophistication from one country to another.

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Aug 09, 2020

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