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1 Participant in the financial market

Essay specific features

 

Issue:

Business

 

Written by:

Lamont M

 

Date added:

March 14, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 902

 

Was viewed:

6139 times

 

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Essay content:

When companies have surplus cash that is not needed for a short period of time, they may seek to make money from their cash surplus by lending it via short term markets called money markets. There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers...
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These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e.g. via a share buyback). Alternatively, they may seek to make more money on their cash by lending it (e.g. investing in bonds and stock). Additionally, borrowers are a saving deficit unit is one whose expenditure exceeds its income for a particular period...
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