Need help with financial markets (1 Viewer)

[cassie62442]

I'm trying to do my homework but having a bit of trouble with the info about financial markets (oh, how I hate this topic...)
Here are the two questions I'm struggling with, can someone help me out?
1. Yung & Co. is anticipating a 10-year expansion plan involving the purchase of three new stores. Suggest how Yung & Co. could use financial markets to assist in this expansion.
(All I can think of is that they'd need a loan, but there are several financial markets that provide them. Which one should they use, and what else do they need?)
2. Explain the factors that influence a business when it is deciding on investment options.
(This one I really have no idea about).

Also, I'm not really sure on the whole financial markets thing at all. The explanations in the textbook confuse me, and I don't know much about the economy to begin with. If someone could explain simply what each of them do it would be great.

Thanks in advance to anyone who can help at all, I really appreciate it!

 

[the-derivative]

1. The way I’d approach this question is by thinking, what do you need to expand? The most obvious thing you need is financial resources. How would you get financial resources – either through investments or borrowing. Hence financial markets can assist Yung & Co in obtaining finance, i.e. through banks, financial institutions, merchant banks etc. Also a business can gain financial resources through investing, so again banks, suparnnuation, mutual funds and stuff like that can help. Finally, in expanding, there’s always a risk involved – hence insurance companies can assist in protecting the business.

2. Well from the top of my head, factors can include the purpose which will influence how much money is needed, also when can the business expect a return on the investment and the risk involved with each investment opportunity.

Hope this helps