Financial markets finance much of the expenditures by corporations, governments, and
individuals. Financial institutions are the key intermediaries in financial markets because
they transfer funds from savers to the individuals, firms, or government agencies that need
funds. Financial Markets and Institutions, 13th Edition, describes financial markets and
the financial institutions that serve those markets. It provides a conceptual framework that
can be used to understand why markets exist. Each type of financial market is described
with a focus on the securities that are traded and the participation by financial institutions.
Today, many financial institutions offer all types of financial services, such as banking,
securities services, mutual fund services, and insurance services. Each type of financial
service is unique, however. Therefore, the discussion of financial services in this book is
organized by type of financial service that can be offered by financial institutions.