Financial Markets vs Financial Intermediaries Essay Sample

This essay sample is based on  Financial Markets vs Financial Intermediaries for Singapore students. We shall start the essay with the topic of the financial market, where we shall be discussing the following:  Firstly we shall be looking at the definition of the financial market. Moving on, we shall be looking at the different types of the same. Lastly, we shall discuss its main function.

Similarly in the topic of Financial intermediaries; we shall be starting with the definition and later on we shall look at the types and functions of the same. Lastly, we will be concluding the sample essay by looking at the differences between the financial market and financial intermediaries.

The Financial Markets vs. Financial Intermediaries Essay is a topic that has been studied and contested by many people in the past, but it’s still an important debate today! If you’re looking for more information on this issue or want to download your own custom-made essay from our team of experts here at Singapore essays Experts then contact us anytime – we are ready when students need help with their assignments!

Introduction- Financial Markets vs Financial Intermediaries Essay

We will be going through the topic of “financial market vs financial intermediaries” in this sample essay. As suggested by the title,  we shall compare the two entities namely; the financial market and financial intermediaries. Moreover, most of us already have a vague idea of what these concepts mean.  However, those who have doubts related to these concepts or are confused among them shall benefit from this sample essay.

Furthermore, to singapore students of finance, this topic is of great importance. Therefore we suggest readers visit our website, where they can find several such essays. In addition, one can also explore our other subjects which include mathematics, business, management, healthcare, economics, and several others.

Moving on, we shall be discussing the topics in different parts, for the sake of simplicity and clarity. Consequently, the layout of the sample essay will be as mentioned below: Before going any further it should be noted that the sample essay shall be divided into parts. Namely; the financial market and financial intermediaries.

Main body- Financial Markets vs Financial Intermediaries Essay

Financial markets: Definition

As the name suggests, the term financial market refers to any marketplace where the trading of securities takes place.  Moreover, securities are financial products used to raise capital in public as well as private markets.

In addition, financial markets play an important role in capitalist economies’ proper functioning. Some examples of such financial markets are, as follows: forex market, derivatives marketplaces, bond market, stock marketplaces, and so on.

Types of financial markets

There are different types of financial markets. In the previous section of this sample essay, we looked at some examples of the same. Here, we shall be looking at all the different types of financial markets in existence.

These are, as mentioned below:

• Stock Markets
• Over-the-Counter Markets
• Bond Markets
• Money Markets
• Derivatives Markets
• Forex Market
• Commodities Markets
• Cryptocurrency Markets

So these are the different types of financial markets. Moreover, each of these different types serves there own purpose and function. Moving on we shall be looking at the function of the financial markets in the next section.

The main function of the financial market

Even though the financial market has several functions, its main function is providing capital and asset allocation in the financial economy. Moreover, the financial market contributes to the overall global economy by providing a free marketplace for the flow of capital, money, and other such financial products.

Financial intermediaries

A financial intermediary is a financial entity that works as an intermediary part(middleman) in a financial transaction between two parties, hence getting its name. Moreover,  it provides numerous advantages to average consumers such as liquidity, safety, and so on.

Moreover, modern technologies have removed the role of financial intermediaries in several fields. However, financial intermediaries have a strong foothold in areas of finance such as banking, insurance, so on and so forth.

Types of financial intermediaries

In this section of the sample essay, we shall be looking at different types of financial intermediaries. So without further adieu,  these are as mentioned below:

• Banks
• Mutual savings banks
• Savings banks
• Building societies
• Credit unions
• Financial advisers or brokers
• Insurance companies

There are so many different types of financial intermediaries. Nevertheless, in today’s time, this act is mostly carried on by the banks as many of these fields are taken over by technologies. Moving on, we shall be looking at the main function of financial intermediaries in the next section.

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The main function of the financial intermediaries

As one might have already guessed, the main function of financial intermediaries is to act as an intermediary. In addition,  it provides a common ground for both entities to deal on. As a result, the financial transition is smoother and easier.

Commonly, financial intermediaries play a vital role when there is a huge difference between the two parties. Meaning that one party may not able to directly able to approach another party. Therefore as mentioned above, financial intermediaries provide a common ground to both parties, to help the process of the financial transactions.

Differences between financial market and financial intermediaries

In this section of the sample essay, we shall be putting together the knowledge gained above previously, in order to compare to terms. Moreover, the difference between the two must have been already somewhat clear to the readers. However, we shall look at the difference between both. So without further adieu:

As we read above, the Financial market is a broad term that refers to a lot of financial market places. While on the other hand, Financial intermediary is a quite specific term. Moreover, the Financial market plays a huge role in the functioning of economies. Whereas, financial intermediaries are basically replaceable. In fact, a majority of financial intermediaries have been taken over by my modern technologies.  However, one can not say the same about financial markets in Singapore, which are virtually irreplaceable.

Conclusion:

The financial markets are a much better alternative to the current financial intermediaries. It is much more effective for society, and it would be even easier with blockchain technology. Financial markets need to take precedence over what we have now in America because they will do more good than harm. We need change NOW!

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