Financial services are provided mainly in two ways: by banks and by markets. Here we outline the key features of financial markets * A market is a very general concept of any arrangement which brings together users for mutual advantage. We’re used to thinking about markets as mainly for goods and services but the concept is… Continue Reading
Tag Archives: markets
The oil price and short and long run supply
The biggest topic in the global economy remains the oil price. It’s notoriously difficult to forecast commodity prices but how can we make sense of what would push the price up or down? A basic demand and supply framework gets us quite a long way * A market consists of demand, supply and some mechanism… Continue Reading
The dark side of share trading
A New York Times article recently reported data from Rosenblatt Securities showing that the percentage of total US stock trading done “off-exchange” has risen from about 15% in 2008 to over 35% in 2013 and occasionally as high as 40%. What does this mean? Conventionally, stocks (shares) are traded on an exchange, which is an organised… Continue Reading