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The Stock Market continues to Rally

The stock market may be a little volatile in recent years, but we are finally seeing it improve enough that individuals are beginning to invest in various stocks again. It is true the stock market can be down one day … Continue reading

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Qualifications: Competition and property rights

Our focus so far has been on markets where rival firms can freely enter and exit, and private-property rights are clearly defined and enforced. The efficiency of market organization is, in fact, dependent on these two things: (1)competitive markets and … Continue reading

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Economic Functions of Financial Markets

The two primary economic functions of financial assets were already dis- cussed. Financial markets provide three additional economic functions. First, the interactions of buyers and sellers in a financial market determine the price of the traded asset; or, equivalently, the … Continue reading

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