
Taxation on the firm’s financial activities. The final section covers a discussion of the impact of Therefore,įinancial institutions and markets should be well regulated. Theseīankruptcies re sult in limited capital flows to firms, and both they and the whole economy can suffer. However, greed can driveįinancial managers and institutions to commit actions that get them into trouble and even force bankruptcy. Financial institutions give firms access to the money they need to grow. Money and capital markets and their major components are introduced in this chapter.
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