Modern Financial Markets
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Table of Contents
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"...[modern financial markets are] also part of the West’s rise to power and economic dominance over the rest of the world. Modern financial markets have their benefits, but they also have their risk and operate in a boom and bust cycle, with busts often occurring due to over-speculation..."
Key Terms
- Banking
- Bank of England
- Bank Notes
- Credit
- Trans-Siberian Railroad
- Stocks & Bonds
- Stocks
- Bonds
- Dutch East Indies Company
- Limited Liability
- Joint Stock Corporations
- Seven Years War
- Boom-and-Bust Cycle
- Panic of 1873
- Insurance
- Risk Management
- Pooling Risk
Guided Viewing Questions
- What role did banking have in the Industrial Revolution and in the development of infrastructure in the nineteenth century?
- Explain the concepts of limited liability and joint stock corporations. How were they essential for the rise of modern stock markets?
- Why is the idea of risk management important for insurance?
- How did advancements in mathematics help the growth of insurance companies?