PLEASE HELP ME ANSWER AND GIVE FEEDBACK.

1. Starting with the definition of financial markets, one can affirm that in its simplest form it is a venue for investors to come together to purchase or sell various types of securities. When it comes its functions, a simple way to describe it can be to think of why it is important to have such a venue for the exchange of different asset classes. For example, why would it be important to have a bond market? One can say because sellers need a market to be able to raise capital to grow their businesses and buyers need a place where they can invest their savings without losing its value to inflation.

Based on textbook or other readings on the topic, what else would you add to the definition of financial markets and/or its functions?

2. understanding the role of Finance in a business organization. Many times, I hear the word accounting and finance used interchangeably. However, it is important to note that although both disciplines involve the monetary activities of a firm, the tasks involved in each area are different.

Gitman describes the role of the Finance Manager as an administrator of the monetary affairs of an organization which includes:

• Developing a financial plan or budget,
• Extending credit to customers,
• Evaluating proposed large expenditures and
• Raising money to fund the firms operations.

When reviewing this definition, I feel that the size and type of business one is in can also impact the duties associated with this role. For example, in a smaller firm, typically you would find more crossover between the accounting and finance roles. As a matter of fact, in a very small organization it may be that the finance functions are completed by the accounting department. In my experience, I see that organizations begin to define the roles of the finance employees once they have grown past a certain point in their business cycle. What are your thoughts on this statement? Have you come across any businesses where the accounting and finance duties are housed under the same area?