Describing The Meaning, Function, And Importance Of Each Of The Following Terms: 1) Investment Banker 2) Stock Market 3) Financial Management 4) Risk Financing?


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The meaning, function and importance of these four terms are as follows:

• Investment Banker

An investment banker is a banker who will sell and negotiate the terms of an investment on behalf of a client. The main function of an investment banker is to take the responsibilities of the action of selling and investing away from the client and into more knowledgeable hands. The importance and value of an investment banker is that they are responsible for making important sales and investments based on their knowledge.

• Stock Market

The stock market is the domain for public trading in shares of a company that are known as stock. The function of the stock market is to display the fluctuations in prices of shares and stocks. It is not so much a physical entity; it is more of a network that can be accessed from different areas. Different countries have their own stock exchanges, but the stock market reflects global stock. The stock market is important as it allows the buying and selling of stock between investors and other companies.

• Financial Management

Financial management is a relatively straightforward and quite self-explanatory term. It can refer to a person's ability to manage their own personal finances at home. It could also refer to requesting help from a bank or building society that hires specially trained financial managers to assist people and companies on how to adapt the best financial strategies. The importance of financial management is that it creates much more awareness of financial techniques and the importance of managing money correctly.

• Risk Financing

Finally, risk financing is a term that refers to the action of saving and providing money that can cover for any unforeseen losses that a company may encounter. Normally, this will involve pooling money away in reserves ready to be used in the event of a crisis.

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