Welcome to Chapter 2, where we delve into one of the main aspects of finance. What is it, you ask? Ask yourself, where do all three areas of finance meet? That’s right, the markets (I know it says in the title, just ignore my lame attempt to be mysterious and create suspense). The financial markets are where each area can go to make money and make things happen. In fact, all markets are financial markets. When you exchange something, you are managing assets. Your local farmers market is even a financial market. Next time you go and someone asks you where you are, make yourself sound like quite the financier and say “Oh, I’m just at the agricultural commodities exchange trading corn.”, because you won’t be lying. Now, one shouldn’t think of the markets as a person, place or thing, but as all these things. Most people think of stock exchanges when they hear the word financial markets, but there is so much more to them than Wall Street and Paternoster Square.
The financial markets as a whole have three main parts, and each will be the focus of a lesson in this chapter.
Lesson 3: Financial Organizations