I am still learning more through MOOCs where I have wrote about previously. Currently, there is this interesting course about Understanding Financial Markets and I would like to share some of the course information with you although you might already know about these.
4 functions of financial markets are:
1) Pooling of resources – Transfer the savings of each investors to corporations. This will allow corporations to expand and use the resources to benefit more consumers. Investors are also able to share the profits and debts.
2) Transferring resources across space and time – You can trade across borders of different countries and time zone. This is made possible with the advancement of technology. The transactions can be done instantly and correctly.
3) Managing risk – One way is to diversify and SGX has helped by decreasing the minimum purchase from 1000 shares to 100. Never put all your eggs into one basket is the common saying. Second way is to …