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Economics/Finances Marc Levinson - Guide to Financial Markets

Posted on 2010-03-16




Name:Economics/Finances Marc Levinson - Guide to Financial Markets
ASIN/ISBN:1861979568
Language:English
File size:1.17 Mb
Publish Date: 2006
ISBN: 1861979568
Pages: 256
File Type: PDF
File Size: 1.17 MB
Other Info: Economist Books
   Economics/Finances Marc Levinson - Guide to Financial Markets

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Marc Levinson - Guide to Financial Markets

& 8220;The word “market” usually conjures up an image of the bustling, paperstrewn

floor of the New York Stock Exchange or of traders motioning

frantically in the futures pits of Chicago. But formal exchanges such as

these are only one aspect of the financial markets, and far from the most

important one. There were financial markets long before there were

exchanges and, in fact, long before there was organised trading of any

sort.

Financial markets have been around ever since mankind settled

down to growing crops and trading them with others. After a bad harvest,

those early farmers would have needed to obtain seed for the next

season’s planting, and perhaps to get food to see their families through.

Both of these transactions would have required them to obtain credit

from others with seed or food to spare. After a good harvest, the farmers

would have had to decide whether to trade away their surplus

immediately or to store it, a choice that any 20th-century commodities

trader would find familiar. The amount of fish those early farmers could

obtain for a basket of cassava would have varied day by day, depending

upon the catch, the harvest and the weather; in short, their exchange

rates were volatile.& 8221;

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