Fin 571 Wk1 Dq 1

588 Words3 Pages
Chapter 2 Question 26: Suppose you are a manager in a manufacturing business. How are the capital markets relevant to the effective performance of your job? Capital markets play an important role in any business not just in manufacturing. They assist in the mobilizing of resources. These resources are then diverted into productive channels. A capital market facilitates and promotes the process of economic growth within my manufacturing business through several ways. The changes in a market will have an effect on the decisions a manager makes. Supply, demand, inventory and production can all be affected by a thriving or poor capital market. The success and effectiveness of a manager will result in investors in the manufacturing company or people who withdraw their investment. Investors in a capital market can view a company’s performance through earnings reports, using different ratios, and let us not forget balance sheets as well. A capital market can be a basis for income of sorts aside from merchandise. In essence, a manager can only be so effective without the means to support production in a manufacturing company. The strength or limitation of a capital market will result in the indication of how well a manufacturing company market value will be perceived. The most important goal of an effective manager is to raise the perceived value of a company. Hi Jamie This is a great response to the discussion question and was very informative. It is very important for a manager to have knowledge on capital markets. It is important to do a thorough review of all performance activities up to the current date. A manager should also take a thorough look at the competition in the capital market. The manager should always know their competitor's business and financing advantages. Using this information, a company can then decide how to gain a momentous advantage
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