Financial Hub

AAA

DEFINITION of 'Financial Hub'

A city or region that is considered to be a focal point for the financial services industry. Financial hubs are home to major banks and/or stock exchanges as well as other financial services. They often develop in areas due to externalities, as well as supportive government regulation.

INVESTOPEDIA EXPLAINS 'Financial Hub'

New York's Wall Street is a highly recognizable international financial hub, as it is the location of the New York Stock Exchange and has long been established as a leader in the financial industry. Other cities, such as London and Hong Kong, are also huge financial hubs. A financial hub can improve a company's economy by drawing in more financial transactions and more business.

RELATED TERMS
  1. High Street Bank

    A term originating in the U.K. to refer to large retail banks ...
  2. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  3. Externality

    A consequence of an economic activity that is experienced by ...
  4. Bay Street

    A street in Toronto, Canada that is home to several major banks, ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Heckscher-Ohlin Model

    An economic theory that states that countries export what they ...
Related Articles
  1. War's Influence On Wall Street
    Bonds & Fixed Income

    War's Influence On Wall Street

  2. The Birth Of Stock Exchanges
    Personal Finance

    The Birth Of Stock Exchanges

  3. The ABCs Of Stock Indexes
    Economics

    The ABCs Of Stock Indexes

  4. The Illusion Of Diversification: The ...
    Fundamental Analysis

    The Illusion Of Diversification: The ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center