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Investments
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Let’s look into the institutional arrangements for equity trading. After all, from a corporate
perspective, stocks are more interesting than many other financial instruments, such as foreign
government bonds, even if there is more money in foreign government bonds than in corporate
equity. It is the equity holders who finance most of the risks of corporate projects. Moreover,
although there is more money in non equity financial markets, the subject area of investments
also tends to focus on equities (stocks), because retail investors find it easy to participate and the
data on stocks are relatively easy to come by. So it makes sense to describe a few institutional
details as to how investors and stocks “connect”—exchange cash for claims, and vice versa