© Mehmet Cihan Functions of Financial Markets and Intermediaries 3.Liquidity Liquidity: the ability to get cash, is a function of time and transaction cost Some liquidity channels: commercial paper, bank CD, or line of credit 4.Payment mechanism The efficiency of payment mechanism Send/receive payments readily 5.Provide information on Security Prices, Commodity Prices, Interest Rates, Company Value, Cost of Capital Information to financial markets Information to managers FINANCIAL MARKETS AND INSTITUTIONS 2.2 The Flow of Savings to Corporations 2.3 Functions of Financial Markets and Intermediaries 2.4 Value Maximization and the Cost of Capital A.B.
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