Jagdambay Exports: A Financial Market Components Research

BUSINESS AND MARKETING
Name:
Course:
Institution:
Tutor:
Date:
Introduction
A financial market is a platform whereby trading of securities, bonds, equities, currencies, bonds, as well as derivatives occurs (Marc, 2009). A financial market is that which is has transparent pricing, as well as basic regulations that are related to costs, trading, and fees as well (Pilbeam, 2010). This also covers the market forces which are related to determining the prices that the securities trade. This paper conducts an analysis of Jagdambay Exports, an Indian company that manufactures and exports baby wear garments. The paper hypothesizes the USA financial market components and the entry and expansion of Jagdambay Exports into the USA market.
Analysis
A financial market has various components. Amongst them include capital markets; this relates to individuals trading in financial securities. This involves both primary and secondary markets. For a company, to raise money through the sale of securities, there is the sale of stocks and bond which are in the company’s name (Pilbeam, 2010). The money market is another segment of financial markets. This kind of market is used by many participants, and it is a means for them to borrow and lend money for a short term. It is characterized by high liquidity, and trading of short maturities (Dodd, 2012). There is also the cash or spot market, in this kind of market, goods are sold for cash and delivered immediately. It is a complex market that isn’t suitable for inexperienced traders (Marc, 2009). Other components of a financial market include the derivatives markets, primary and secondary markets, and forex and the interbank market amongst others. It is also important that Jagdambay Exports understand the difference between financial markets and physical assets market (Pilbeam, 2010). A physical assets market is that which engages in the buying and selling of physical goods and services. On the other hand, financial markets trade in financial products such as stocks, commercial papers, and bonds. These represent similar value position within a company, instead of the consumer markets. It would be of relevance to Jagdambay Exports to gauge the current state of the economy and to serve as a tool for decision making to provide an efficient market (Dodd, 2012).
The CFO of the company would be influenced by the decision to make after examining the relevance that both money and capital markets have. The capital market offers an opportunity for the public to invest their savings in the securities, these savings provide higher returns. More so, a well-established capital market is capable of attracting funding, even from foreign investors (Marc, 2009). Moreover, it is a means for the public to know the condition of the company’s securities in the economy. Due to the capital market, the company may be able to expand its industry, and also be able to diversify its business (Pilbeam, 2010). The capital market also provides opportunities for different institutions such as commercial banks, to earn a good return on the investing funds. On the other hand, the money market is quite relevant. The money market provides short-term funds which av...