from outside investors, and they are willing to pay interest for the opportunity to obtain a rate of return on the

investment of that financial capital.

On the other side of the financial capital market, financial capital suppliers, like households, wish to use their

savings in a way that will provide a return. Individuals cannot, however, take the few thousand dollars that they

save in any given year, write a letter to General Motors or some other firm, and negotiate to invest their money

with that firm. Financial capital markets bridge this gap: that is, they find ways to take the inflow of funds from

many separate financial capital suppliers and transform it into the funds of financial capital demanders desire.

Such financial markets include stocks, bonds, bank loans, and other financial investments.

Click to view content (https://openstax.org/books/principles-microeconomics-3e/pages/17-introduction-to-

financial-markets)
{"title": "Principles of Microeconomics 3e", "total_pages": 597, "producer": "Prince 14.2 (www.princexml.com)", "creationdate": "2022-12-07T14:15:44-06:00", "upload_timestamp": "2026-02-07T15:24:38.309401", "file_size_mb": 26.99, "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "creator": "PDFMiner", "file_type": ".pdf", "uploaded_via": "batch_uploader", "batch_upload": true, "file_name": "Microeconomics3e.pdf", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "moddate": "2022-12-07T14:23:05-06:00"}