FINANCIAL MARTETS

FINANCIAL MARTETS

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”.

THREE FUNCTIONS OF FINANCIAL MARKET:

  • It is helpful for raising the capital.
  • It is helpful for transfer of risk.
  • If is so helpful for international funding.

OTHER FUNCTIONS OF FINANCIAL MARKETS:

There are some basic functions of financial market which are as under,

  • Borrowing and Lending
  • Determination of Price
  • Risk Management & Sharing
  • Liquidity
  • Efficiency

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

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