Financial system, capital market-oriented (capital market-orientated financial system)

Economic savings flow into the economic cycle via a range of different financial instruments, primarily bonds, equities, funds and derivatives. Banks do not act as interest-bearing lenders, but as intermediaries between debtors and investors in return for commission. Asymmetric information must be overcome here through the greatest possible transparency. Detailed accounting regulations and rating agencies therefore play a major role. The capital market-oriented system prevails in the USA. The market capitalization of stock exchanges in the USA is more than three times as high as in Germany in relation to gross domestic product. In addition, in 2010 there were more than twice as many companies listed on a stock exchange per 1 million residents in the USA than in Germany.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/