1) What is this special function referred to at the beginning of the first paragraph? allows Explain how this function for efficiency. economic 2) As mentioned in the second paragraph, which type of investment does resorting to brokerage firms refer to? Explain your answer 3) In the third paragraph, Dabour referred to three benefits of investing through a financial institution, please state which benefits he is referring to and explain each of them. 4) In reference to paragraph four: a) Please explain why it is important for the government to regulate financial markets. b) Who regulates financial institutions in Egypt (whether banking or non- banking financial institutions)? c) Compare the benefits of purchasing securities from an organized exchange rather than other methods of purchasing securities in terms of regulation.

Read the following paragraph and answer the questions below: A financial market is not a usual market where you buy commodities; instead it has a special function, which has a direct impact on improving the efficiency of the economy. This market consists of various institutions. Financial institutions allow investors to access necessary information about the different securities traded in the market. Investors (buyers) can resort to brokerage firms to access such securities, of firms listed in the stock exchange. Investors who are aiming to make return are exposed to a different alternative, other than investing in listed firms, this alternative is to put their money directly in a firm that is seeking funding An investor named Dabour prefers to invest in listed firms, through a financial institution, such as the stock exchange rather than a firm that is collecting money on its own. Dabour supports his choice saying that he believes this way would allow investors to attain more information about the firms they are investing in, and would also reduce the wastage of time, effort and money to execute the investment. Additionally, purchasing of securities that are available on a common platform helps in the easy conversion of securities into cash. Another main advantage of investing through a financial institution is the proper regulation that investors are exposed to, as opposed to other sources of investing