The Third Economic Function of a Financial Market Is That

question 26

Essay

The third economic function of a financial market is that it reduces the cost of transacting. Name and describe the two costs associated with this economic function.

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Definitions:

Market Performance

A measure of the outcomes and results achieved by a company or product in a market context, often evaluated through sales, market share, or growth rates.

Supply Chain

The system of entities, individuals, processes, data, and assets engaged in transferring a product or service from the producer to the consumer.

Logistics

The coordination and management of moving goods from their point of origin to their final destination.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, often summarized as product, price, place, and promotion.