Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability. Market Behavior. Financial Regulation sets the parameters to ensure that firms will comply with the standards and level the playing field. The policies were set to regulate the information disclosure, advantage over intemal information, entry of new players, minimum capital requirement and minimum govemance requirements. QUESTION: Explain further what "market behavior" means. How do laws control market behavior in financial markets? Explain. Then identify the risks that arise from it.
Since risks, such as credit, liquidity, default, technological, and legal risks, among others, may affect the financial operations of the business or organizations. Laws are created to enfore financial regulations. In financial markets, these laws, rules and regulations control the following drivers: competitiveness, market behavior, consistency and stability.
Market Behavior. Financial Regulation sets the parameters to ensure that firms will comply with the standards and level the playing field. The policies were set to regulate the information disclosure, advantage over intemal information, entry of new players, minimum capital requirement and minimum govemance requirements.
QUESTION:
Explain further what "market behavior" means. How do laws control market behavior in financial markets? Explain. Then identify the risks that arise from it.
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