Financial markets are very crucial
part of a modern economy,we have by now come across an understanding that
financial markets do provide an opportunity to the peoples who have an excess
of funds or surplus of funds to interact in a market place and meet with
peoples who have an deficit of funds,,,financial markets help in channelizing
the funds and attaining efficiency and profit maximising intention too.
For proper functioning and efficiency of a market it is important that
market is fully regulated, and properly monitored,,
With advent of more and more
demand of increasing deregulation, we are witnessing newest of financial
explorations in terms of financial products, [like credit default swaps,,these
were considered as weapons of mass economic catastrophe by WARREN BUFFET] ]it
is not known many a times that these product are how much toxic in naturehow
much can they hurt an economy if they falter..,
In a way financial economy has taken over the
true economic production,,,we see an era when financial products are created to
make more and more profits, after the downfall of 2008 there were many a times
questions raised about the use of such innovative operations,,,
To ensure that markets work
efficiently, these explorations should be accompanied with very strong and
stringent regulation framework..
Then important is free flow of
information, proper information should be available to investors,,,
Another tendency which is
widely witnessed is of insider trading,,this has to be curtailed,,,eg,rajat
gupta of board of goldman sachs was responsible for insider trading .
Insider trading is when one of
the prominent members of a board of company who has an excess to confidential
reports of company, leaks them to outside to make individual profits.
So important thing for efficient markets is a
market which is fully regulated,,,well monitored,,,allows every one to
participate,,,also ensures that information is available to all,,and keeps a
necessary check on the insider trading
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