How Does The Government Manage Finances Of Investors?

[Good-Guy]

Finance is a very interesting subject, actually. When it comes to finance, we all tend to think about business, corporations, stock market, and even cryptocurrency market. This is because even cryptocurrency market is also worth trillions of dollars. However, what we tend to overlook is the fact that there are many governmental organizations that also deal in finance. I think this is why many mutual fund investors tend to invest in government securities so that revenue could be generated. Whenever an investor invests capital, the government uses that capital to invest in T-Bills, bonds, and many other investment instruments.

This money is used by the government to develop various projects. When the projects are finally, developed, the revenue generated by those projects is used to return the capital to the investors along with profits. However, I do not understand if that if the cash flow of certain developing country is so strong, then why do these countries have such a poor economical and financial structure? I think the governments of certain countries do a poor job managing the natural resources and funds of foreign and local investors and I think this is the main reason why poverty exists. What do you think?

 

[Kingsley]

Managing the finance in any country is suppose to be one of the major function of a reliable government in the world over. All the funds in a country is writhing the whims and control of the government. Funds get into the confine of the government through taxation this could neither be direct tax which comes from personal income tax, company income tax and the likes and they also get tax indirectly from vat, excise duties import and export. Then there are other forms of funds that comes in through the natural resources that resides in the geographical entity. And there are other funds that comes in through grants, royalty loans and the likes.


When then government gain access to all these funds that are suppose to use it for the betterment of her citizens, and to improve the welfare of his or her citizens. The are suppose to provide social amenities such as good roads, portable water supply, good and affordable schools, and accessible health care, and also provide stable power supply for her citizens.

But quite unfortunately the government is not doing what they ought to be doing with this funds in some country hence they still remain poor and not progressive.

 

[Yusra3]

Government is responsible for financial market regulation and providing features that serve investors' interests. It provide law and regulations to maintain order, truths and fairness, and also to avoid scams. Specialized agencies such as the SEC and FINRA are intended to control and regulate financial institutions, brokers, and investment advisors in the country. The government also grants access to investment education resources which also serve as the avenue for the investor to file his complaint. Along with this, the manner of tax laws and regulations impact individuals and institutional investors’ investment strategies and financial planning decisions...