What are financial interns?
Financial intermediation is a process that occurs when a financial intermediary lends money from one source on loan to another source for investment, financing or financing. This type of support depends on economic development and growth. The preparation of these savings and profits has a direct effect on the economic well-being of the community. The competition that occurs between these channels lowers the cost of these funds and gives the treasury stock (Yam, 2003).
Financial intermediaries act as a middle man who connects two neighboring parties in investment and growth. Most often this process is completed by a financial institution backed by the FDIC, or Federal Deposit Insurance Corporation. Under this corporation, individual depositors are covered up to $100,000 in deposit insurance. These businesses and individuals also have the ability to open multiple accounts and add additional subscribers to earn insurance on their money. It is the safest way to invest depositor against the bank if the system fails or gets out in the open. point (FDIC, 2007).
What role do financial intermediaries play?
Financial institutions play an important role in financial intermediation, as they channel funds from loans and savings to the needs of individuals, governments and businesses (Gitman, 2006). Individuals and businesses save or save money in a financial institution. The reasons for storing this money were typically to collect earnings for business or even for maintenance. These funds are collected and given to someone for an investment opportunity – for example, a loan or mortgage from a bank with funds collected from institutional patrons (Financial Intermediation, n.d.).
Banks are not the only types of financial intermediaries, other organizations can act as intermediaries. Financial institutions can be divided into two categories: depository and non-depository. In consignment we have traditional banks, credit unions, and savings and deposit loans. The other type, non-depository, are financial advisors and brokers, insurance companies, life insurance companies, mutual funds, and All financial interns are competitive. Insurance companies operate in basically the same way. When a customer pays their monthly or seasonal premium for insurance, the money is collected and given to others for possible damage or repairs to the car depending on the type of insurance bought (Yam, 2003).
Actions made by financial institutions or other intermediaries will be handled with care and diligence. The money they use in a financial matter must be very faithful and respected, since it is or benefits from the customer of that financial institution.
Why are these roles important?
The financial intermediary process is important to everyone. It helps small-business to continue the successful financing of the business. It’s interesting to freelancers because they get things from both sides of the deal. When a third party borrows in this financing process, two or more parties in the same community arrange to help each other. with growth and expansion. For a specific institution, the lender or saver can earn interest by allowing the savings to be used in this way.
When a company goes ahead with an IPO, how do they respond to increased internal scrutiny?
The first public issue of a company’s stock is called an initial public offering (IPO). IPOs are typically done by small but rapidly expanding companies to gain more capital, quickly. We need money to continue running a successful business. When a company “goes public,” it typically receives increased scrutiny from insiders. The reason is that the financial institution in writing or building credit is also very heavily invested in the enterprise. They are now responsible for promoting and facilitating the company’s stock offering. (Gitman, 2006)
Financial institutions must also assess for themselves if the proposal is worthwhile and if it will be beneficial to them. Previous experience with independent financial institutions can turn the firm into a front-end for keeping current clients. There are usually many hoops a company has to jump through to get the support they need to proceed. The new public company will have to coordinate obligations with the lending institution to undertake continued support. This may include fair work and ethical practices and even monthly financial reports.
References:
CTU Online. (Ed.). (ca. 2007). Phase 3 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved October 17, 2007, from CTU Online, Virtual Campus, FIN310 Financial Management Principles: 0704A-05. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid;=39
Deposit Insurance Corporation. (2007) FDIC Insurance Basics. Retrieved October 19, 2007, from http://www.fdic.gov/deposit/deposits/insured/basics.html
Intermediation. What are financial intermediation and intermediary institutions? Retrieved October 19, 2007, from http://www.financialintermediation.net/
Rayport, J. & Jaworski, B. (2007) Introduction to E-Commerce. (2nd ed.) New York: McGraw-Hill.
Yam, J. (2003) Gremen Information Center:Regulator and Financial Intermediation Retrieved on October 19, 2007 from http://www.info.gov.hk/hkma/lat/viewpt/20030306e.htm
Report:
- www.fdic.gov/deposit/deposits/insured/basics.html< /a>
- www.financialintermediation.net/
- www.info.gov.hk/hkma/lat/viewpt/ 20030306e.htm
