ABSTRACT

INTRODUCTION This chapter deals with the general economic and fi nancial environment in which market participants make investment decisions. Specifi cally, it discusses the securities an investor can invest in as well as the fi nancial markets that facilitate the trading of securities among investors. In this respect, the functions of fi nancial markets and fi nancial intermediaries are explored. The chapter also discusses the objectives and constraints of investors, individual and institutional alike, and concludes with some issues that arise within fi nancial markets. These include problems encountered by market participants while engaging in mutual trades of securities and the occurrences of unethical investment behavior in the marketplace. We end the chapter with the signifi cance of learning and practicing investments.