Banking and Financial Market Services

          Like individuals, business firms need banking services. The business world operates on credit, and banks supply the needed capital, or funds, to worthy businesses. In addition, business firms need safe depositories for their money and other valuables, and they need checking facilities to make their payments easier. Most firms seek a line of credit (an approved amount of money that can be borrowed) to ensure that their financial needs are met in daily operations. And, of course, bankers advise business firms about financial matters and help to solve general management problems.          To finance their operations, large firms sell stocks and bonds, and even smaller firms are more and more turning to the sale of securities to provide investment capital. Huge, powerful brokerage and security firms handle such sales and administer the payments of bond interest and stock dividends. Stock markets, bond markets, and commodity exchanges provide many financial services to business firms and individuals.
         All kinds of business firms -- from farming, fishing, lumbering, and mining to factories, wholesalers, retailers, and service firm -- need financial services. We shall see how the banking and financial industry operates to serve business.