A field of accounting that treats money as a means of measuring economic performance instead of as a factor of production. It encompasses the entire system ofmonitoring and control of money as it flows in and out of an organization as assets and liabilities, and revenues andexpenses.
Financial accounting gathers and summarizes financial datato prepare financial reports such as balance sheet andincome statement for the organization's management,investors, lenders, suppliers, tax authorities, and otherstakeholders.
Financial Market
What Does Financial Market Mean?
Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade.
Some financial markets only allow participants that meet certain criteria, which can be based on factors like the amount of money held, the investor’s geographical location, knowledge of the markets or the profession of the participant.
Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade.
Some financial markets only allow participants that meet certain criteria, which can be based on factors like the amount of money held, the investor’s geographical location, knowledge of the markets or the profession of the participant.
Investopedia explains Financial Market
Financial markets can be found in nearly every nation in the world. Some are very small, with only a few participants, while others – like the New York Stock Exchange (NYSE) and the forex markets – trade trillions of dollars daily.
Most financial markets have periods of heavy trading and demand for securities; in these periods, prices may rise above historical norms. The converse is also true – downturns may cause prices to fall past levels of intrinsic value, based on low levels of demand or other macroeconomic forces like tax rates, national production or employment levels.
Information transparency is important to increase the confidence of participants and therefore foster an efficient financial marketplace.
Financial markets can be found in nearly every nation in the world. Some are very small, with only a few participants, while others – like the New York Stock Exchange (NYSE) and the forex markets – trade trillions of dollars daily.
Most financial markets have periods of heavy trading and demand for securities; in these periods, prices may rise above historical norms. The converse is also true – downturns may cause prices to fall past levels of intrinsic value, based on low levels of demand or other macroeconomic forces like tax rates, national production or employment levels.
Information transparency is important to increase the confidence of participants and therefore foster an efficient financial marketplace.
Read more: http://www.investopedia.com/terms/f/financial-market.asp#ixzz1W6qFzijo
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