Title: 1 Participant in the financial market
|Date:||July 28, 2013|
|Length:||4 / 902|
|No of views:||0|
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When companies have surplus cash that is not needed for a short period of time, they may seek to make money from their cash surplus by lending it via short term markets called money markets.
There are a few companies that have very strong cash flows. These companies tend to be lenders rather than borrowers...
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These companies tend to be lenders rather than borrowers. Such companies may decide to return cash to lenders (e.g. via a share buyback). Alternatively, they may seek to make more money on their cash by lending it (e.g. investing in bonds and stock).
Additionally, borrowers are a saving deficit unit is one whose expenditure exceeds its income for a particular period...
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