What is the Financial Market and How It Works

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The financial market is an environment for trading financial products. As in any negotiation, there are two parties who have similar interests and reach an agreement. In the case of negotiations in the financial market , the parties are divided into those who lend money and those who borrow to return with interest. In securities markets such as public bonds , shares , investment funds , futures contracts and derivatives, two intermediaries make operations possible. In this case, these intermediaries are BM&FBOVESPA and its stockbroker. Those who lend are investing with a clear objective: to obtain a return on their capital. Today, any individual or legal entity can invest in most segments of the financial market in a practical way. What many people don't know and we're going to reveal today is: even the money that you think is sitting in your checking account could be being used by your bank as a loan resource.


So, even without wanting to, you are already part of the financial market. In this text, we will talk everything about what the financial market is and how it works with tips and examples. If you have a suggestion, question or criticism, leave your comment at the bottom of the page. Good Brother cell phone list reading! Understand what the Financial Market is financial market what is Mastering the financial market will help you earn more. What you read in the caption is true. Your bank can lend you the money left in your current account. In other words, it does not pay any fees and still uses account holders' money in a kind of automatic application. Pretend that this month, after a lot of personal planning  and practicing financial education , you managed to save R$1,000. And this amount is in your current account.




You know you should be investing that money to earn at least the prime rate. Even so, that money just sits there. In fact, in most cases, the checking account has a tendency to decrease money. But we won't go into that. It may seem like a big decision to invest money , but believe me, your bank is doing this right now with your capital. While you stop investing, he invests himself, lending this money to other account holders who need resources. Banks receive much more than the base rate per year on loans. This is because they run the risk of not receiving the agreed amount back, that is, of the payer not fulfilling their responsibilities. Brazil has one of the highest rates in the world, and there is no effective transfer. As stated, there is still an administration fee charged to your account.