INTRODUCTION
We must begin by familiarizing ourselves with some concepts that we will use throughout this essay, we will begin with financial instruments, which we can define as those tools that provide us with a financial gain and a debt to the counterpart, ranging from receiving money to another. financial instrument or product. It is also important to mention that it is the money market, which can be defined as that primary market in which only organizations authorized by the Mexican Stock Exchange (BMV) are capable of granting an instrument to another entity (company), but what instruments are these authorized bodies able to negotiate? Although there is a great diversity of instruments, we will only use those that are authorized by the BMV, this,Because there is a secondary money market which makes money or financial instruments available openly, of course, it does not have the same reliability, credibility, transparency, responsibility or obligation as the primary money market, which is regulated by various institutions in Mexico, which to mention a few are the Ministry of Finance and Public Credit (SHCP), the National Banking and Securities Commission (CNBV) and a variety of laws.the National Banking and Securities Commission (CNBV) and a variety of laws.the National Banking and Securities Commission (CNBV) and a variety of laws.
Now, what institutions handle financial instruments in Mexico? The financial system is managed through financial intermediaries and financial markets, of which there is a great diversity, perhaps the best known financial intermediary is the bank but there are also other intermediaries. But what is a financial intermediary and a financial market? The financial intermediary is that institution that is capable of negotiating between those who have money and those who need it. While the financial market are those institutions that are capable of exchanging assets for the purpose of having money over time.
DEVELOPING
The instruments that can be traded are the following:
- Treasury Certificates (CETES). Development Bonds (BONDES). Banking Instruments; bank acceptances, bank promissory notes. Corporate Papers; short-term stock certificates, medium-term promissory note, stock certificate.
These instruments are the most regularly handled within the financial system through financial intermediaries and the financial market. Although the best known financial intermediary is the bank, there are also some others, which are insurers, surety companies, lessors, brokerage firms and investment fund managers.
“ The financial system plays a central role in the functioning and development of the economy. It is mainly made up of different intermediaries and financial markets, through which a variety of instruments mobilize savings towards their most productive uses ”(Mexico). Banks are the institution most widely recognized by the public, but thanks to banks, a greater flow of money is generated on a daily and constant basis.
Now it is necessary to mention the financial market, which are made up of debt markets, equity markets and the exchange market. The first refers to when the Federal, State or Local Government, as well as a parastatal or private company, needs financing. The stock market is when a company requires capital and for this it asks for a loan in the form of credit or through the issuance of new capital, there is a main difference, which is that in the loan interest is paid to the person who lends it to you and with not capital investment, in capital investment (equity issuance) dividends are only distributed to investors when there is a profit. And the exchange market is the monetary value that a foreign currency has compared to the exchange rate in national currency.
The functions of financial intermediaries and the money market is basically to be the voice of those who need money and the voice of those who have it, through them it is how financing is obtained for different projects or activities of different companies, both governments and of public and private companies.
CONCLUSION
We need a more solid financial culture, where this type of knowledge is imparted from an early age so that when an adult is able to have safe savings, responsible consumption and a better investment of money, where the value of it is maintain and at your best, increase your value.
Although, it is important to mention that everyone knows banks as a financial intermediary, but it is not the only one, we must be more curious and have an approach to different types of financial intermediaries that, according to your income, is the most convenient for you.
We must cultivate more in financial education to transmit this knowledge to the next generations, what if that were not enough, they already present a lack of values and respect, that they do not lack a correct financial education, supported from school to at home. By making correct use of money and the benefits that it brings, they are the way to induce this type of issues to the youngest.
There is also a problem in the dissemination of this type of information, it should be easier to access it and not have to do such deep searches to reach a sea of information that, at first glance, looks true information but after a proper reading, contains misleading or erroneous information.
BIBLIOGRAPHY
Financiera, E. (sf). www.enciclopediafinanciera.com. Retrieved on May 29, 2016, from www.enciclopediafinanciera.com:
Ixe, C. d. (2012). www.cbbanorte.com.mx. Retrieved May 29, 2016, from www.cbbanorte.com.mx:
Mexico, B. d. (sf). www.banxico.org.mx. Retrieved May 29, 2016, from www.banxico.org.mx:
