Q.1:- Suppose, you recently joined a brokerage firm of Harry Jonathan & Co as an investment adviser. Your first task is to analyze and report the nature of British Financial markets to Monica Williams, a professional architect who recently migrated to UK from Italy. Mrs. William is a very successful architect and expect a sizeable investment in architecture industry through harry Jonathan. She is a smart investor and keen to understand what will happen to her investment. Following are some questions that you can answer to convince her for this investment.

Explain three ways in which capital is transferred between borrowers and savers? Describe each one.

Why are financial markets essential for a healthy economy and economic growth?

Briefly explain the following financial institutions: investment banks, commercial banks, mutual funds, and insurance companies.

What are the two leading stock markets? Describe the two basic types of stock markets.

If JBP architect decided to issue additional common stock and Mrs. William purchased 100 shares of this stock from Harry Jonathan, the underwriter, would this transaction be a primary or a secondary market transaction?