What role does finance organization play? Do preference affect value?

What role does finance organization play?

Do preference affect value?

Expert Solution

Finance organzations collect money from people who want to invest their money in different financial instruments and then provide money in the form of loans to people who require money. The role of finance organization is to bridge the gap between the people who want to deposit their money and the people who want to take loans. It acts as mediator between these people. Thus the main role of finance organizations is to fulfill the finance requirements of the society.

Yes, preference affects value. The more people prefer a particular stock or investment option, the more will be the price of the stock. In other words, higher preference implies higher demand thus leading to higher value.

jeff jeffy answered 2 years ago

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What role does finance organization play? Do preference affect value?

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