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Finance and financial institutions play a big and important role in our lives. Finance and financial services are vital to government, businesses and retail consumers. It's very important to have a stable financial system for government of every country. An economy's financial system exists to organize the settlement of payments, to raise and allocate financial resources, and to manage the risks associated with financing and hedging of business transactions. Superior financial system has a secure and efficient payment system, security markets and financial intermediaries that arrange financing, and derivative markets to mitigate risks of business transactions with financial instruments.

Businesses use financial system and services provided by banks and other financial institutions in order to operate efficiently. Efficient financial markets enable businesses to collect financial resources via debt or equity offering to invest in projects that would continue expansion of the business. Investors enhance their wealth and economic well-being while enhancing productivity and consumer basket quality for the people employed by the business.

Funds are mobilized either as debt or equity. Debt funds are supplied as a loan and generally the repayments are scheduled, whereas equity represents partial ownership of the business. Equity shareholdes, investors and business owners will share the profits and losses of the business.
What pays under capitalism is satisfying the common man, the customer. The more people you satisfy, the better for you. - Ludwig Von Mises

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