The Federal Reserve Essay Example | Topics and Well Written Essays - 1250 words - 2

The Federal Reserve - Essay ExampleThis study seeks to analyze the post of the pecuniary markets in economic wealth humanity in the United States as well as three fiscal securities which include stock component parts, bonds, and treasury bills. Analyze the role monetary markets play in creating economic wealth in the U.S. Financial markets have a significant role as far as the United States economy is concerned. Most importantly they aid in the creation of wealth through various ways. In line with this a major role of financial markets is the facilitation of exaltation of pecuniary resource from those who have surplus to those without. This basically means that funds are channeled to borrowers from lenders through systems and frameworks in the financial markets. Lenders spend small portions of their incomes while the rest is kept for savings while borrowers wish to spend more than than their incomes. This makes it possible for funds to flow from the lenders to the borrowers. Financial markets provide an avenue through which finances move from lenders to borrowers. In financial markets financial instruments otherwise regarded as financial securities are instruments that allay the transfer of funds. Borrowers purchase the financial securities from lenders which acts a claim on future assets and incomes of the former. Therefore financial markets enable companies to obtain funds in a much easier for development and growth or rather for the exploitation of a new line of work idea. This processes therefore translates to the creation of wealth in the United States since private businesses, the government as well galactic companies can be able to engage in Investment activities as a result of quick available funds through the financial markets securities. Provide a general overview of each of the three (3) securities you chose. Be sure to include such information as name, company it represents (if applicable), pricing, and historical performance. Walmart Company makes usage of financial securities to source funds and be able to continue in business. Stock shares are financial securities that facilitate operations of this company in the financial markets in the United States. Stock shares enable castors to actually invest their funds in this company. Walmart company shares have in the past presented an investment image that is not that pleasant to investors (Groz, 2009). Over the past decade the company traded its shares in the stock exchange market in bran-new York with the price per share being $58.75. At the time the earnings yield per share was 2.54% which meant that investors received an earning per share of $1.49. Such a rate of return on Walmarts shares was actually lees by a half of what an investor could have received if they invested in treasury bonds. In this case the United States treasury bonds had a much better deal for investors. The returns on shares did not account for payment of taxes after the distribution of dividends to the shareholders. Besides the use of treasury bonds, the United States government issues treasury bills in order to be able to source funds to support its investments as well as other activities. Treasury bills securities are short term instruments whose maturity date is usually on a quarterly, half year or annual basis (Valdez, 2002) The United States t