FINANCIAL MARKETS AND ITS TYPES
FINANCIAL MARKETS AND ITS TYPES
DEFINATION
Financial market is a market where the financial assets are traded.
In other words,
Financial market is a place which allows the people to buy and sell their financial securities, stocks and bonds at same place.
“The place which allows two or more persons for financial dealing is called financial market”.
TYPES OF FINANCIAL MARKETS:
These are the types of financial markets which are as under,
- Capital Markets
- Stock Markets
- Bond Markets
- Commodity Markets
- Money Markets
- Derivatives Markets
- Futures Markets
- Insurance Markets
- Foreign Exchange Markets
CAPITAL MARKET:
Capital market is a market where companies and government raise their capital for its operations and investment.
STOCK MARKET:
Stock market is a public place where stocks and securities are traded.
BOND MARKET:
Bond market is a financial place where debt securities and bonds are traded.
COMMODITY MARKET:
Commodity markets are those markets where raw material and primary products are traded.
MONEY MARKET:
Money markets are those markets where assets and other one year maturity securities are traded is called money market.
DERIVATIVE MARKET:
Derivative markets are those markets which deals the future contracts.
FUTURE MARKET:
Future market deals the buying and selling of commodities on a specified future date.
INSURANCE MARKET:
Insurance market deals the risk of loss in future or uncertain period.
FOREIGN EXCHANGE MARKET:
Foreign exchange market is the world wide market which deals the different currencies.
Tags: Assets of Financial Institution, Financial Assets Trading, Foreign Exchange Markets, Types of Financial Markets