Question

which economic decisions made at the national level (in the United States) impacted securities markets and made bonds a very lucrative business on Wall Street.

Answer 1

USA government makes some national level economic decisions for their securities markets which make the market very efficient. The bonds and securities in the market are actively managed and highly profitable in USA. The major participants of US securities market are corporations, governments, people, organizations etc. The decisions include regulating buying, sell, recording, facilitating the trading of securities. Also, the brokers, exchanges, investors and financial institutions are the main working bodies which maintain the efficiency of securities.

• The process of dematerialization is the main economic decision taken by USA to convert the physical securities in electronic form.

• The cashless and contactless trading has reshaped the securities market. The consumers also feel safer in investing in the securities like shares, bonds, etc. This leads to high profitability and security in the markets. This is an easy and simple way to reduce cost and risk of investing. This also reduced the stress of brokers and other mediators.

• Most of the USA securities include corporate bonds and the government mortgage back these securities and convert them into dematerialized form which makes the trading smooth. Moreover, the government made personal financial roadmap and evaluate the comfort zones of the customers and businessmen.

• Asset allocation is also important decision for the securities marketing. Also, the government maintains emergency funds for the sudden unemployment.