Briefly Explain the Functions of Financial Markets

question 11

Essay

Briefly explain the functions of financial markets.

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Definitions:

Revenues

The total income generated from normal business operations, often from the sale of goods and services before expenses are deducted.

Expenses

Monetary outflows or costs incurred in an entity's operations.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the business assets.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.