Financial Hub

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.

BREAKING DOWN '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. Basis Differential

    The difference between the Henry Hub spot price and the corresponding ...
  2. Henry Hub

    A natural gas pipeline located in Erath, Louisiana that serves ...
  3. The City

    The main financial district of London, and one of the world's ...
  4. Financial Portal

    A website that provides a variety of financial data and information, ...
  5. Hub And Spoke Structure

    An investment structure in which several investment vehicles, ...
  6. Financial System

    A financial system can be defined at the global, regional or ...
Related Articles
  1. Managing Wealth

    The World's Top Emerging Financial Hubs

    Creating a desirable and competitive financial center, a goal among the emerging financial hubs, can be undone by its volatility.
  2. Financial Advisor

    New York's Economy: The 6 Industries Driving GDP Growth

    Learn about the six most influential industries in New York, the most economically productive city in the country, and home of Wall Street and Fifth Avenue.
  3. Personal Finance

    5 U.S. Cities With High Paychecks and a Low Cost of Living

    Consider these U.S. hubs where workers get paid competitive salaries while enjoying a high quality of life due to a low cost of living.
  4. Markets

    Top 6 Overseas Cities For Finance Careers

    There are finance jobs around the globe, but some cities offer more opportunities than others. Here, in alphabetical order, are the top six.
  5. Investing

    How New York Became the Center of American Finance

    While New York is the undisputed center of American finance, it wasn't always that way. Here's a look at how the city achieved its dominant position.
  6. Personal Finance

    5 Cities the Ultra-Rich Are Moving to

    Learn the top five cities worldwide that are attracting the most high-net-worth individuals, and discover factors that make a city appealing to the ultra-rich.
  7. Investing

    Top Under the Radar Tech Hubs for Investing

    While cities like San Francisco are well known tech hubs, there are others that are ideal for prospective investors who want a piece of the action.
  8. Markets

    The Top Three Financial Centres in the World

    London has unseated New York as the leading global financial centre as Hong Kong comes in third place, but the UK's future role in EU may change things.
  9. Investing

    Understanding the Financial Sector

    The financial sector is a category of stocks comprised of firms that provide financial services to commercial and retail customers.
  10. Personal Finance

    How Much Money Do You Need to Live in NYC?

    Learn how much money you need to meet basic expenses in New York City as a student, as a professional and as an unemployed job seeker.
RELATED FAQS
  1. What distinguishes the financial services sector from the banks?

    Learn about the difference between the banking industry and the financial services sector and how to distinguish financial ... Read Answer >>
  2. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  3. What are the biggest trends affecting the profitability of the financial services ...

    Explore the trends that most affect the financial services sector, including the role of central bank policy and challenges ... Read Answer >>
  4. How does the landscape of the financial services sector in the U.S. compare to Canada?

    Read about the financial services sector in the United States and Canada, two countries that represent each other's largest ... Read Answer >>
  5. What are the main reasons an investor should consider an allocation to the banking ...

    Learn about investment opportunities in the commercial and investment banking industry. Find out why many investors choose ... Read Answer >>
  6. What are the main factors that drive share prices in the financial services sector?

    Learn what factors affect share prices in the financial services industry and how shrewd investors analyze those factors ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center