Why Is It So Important for an Economy to Have

question 49

Essay

Why is it so important for an economy to have fully developed financial markets?

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Definitions:

Dividends

Sum disbursed by a business to its shareholders, indicative of a fraction of the business's profit.

Contractual Agreement

A legally binding agreement between two or more parties outlining duties, terms, and conditions that those parties have agreed upon.

Bonds And Stocks

Financial instruments where bonds represent loans to an entity that pays periodic interest, and stocks represent ownership shares in a corporation.

Secondary Equity Offering

A process where a company that is already publicly traded issues additional shares to investors.