Question

Write a brief “Overview of Global Financial Market” Areas to be covered :- Money Market and...

Write a brief “Overview of Global Financial Market”

Areas to be covered :- Money Market and Capital Market and their products

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country’s economy. It acts as an intermediary between the savers and investors by mobilising funds between them.
A financial market is the hub of investors. The financial markets are classified into different categories depending on the maturity of the financial assets and the trading structure of the securities. A financial market is a marketplace where people meet each other with the intention of buying and selling goods or services. The prices of the exchange are, however, pre-set. The supply and demand forces of the market control the key to the pricing of these products.


Different types of financial markets are as follows.

Money Market: The market where monetary assets such as commercial paper, certificate of deposits, treasury bills, etc. which mature within a year, are traded is called money market. It is the market for short-term funds. No such market exist physically; the transactions are performed over a virtual network, i.e. fax, internet or phone

Capital Market:This financial market engages in the trading of financial securities such as equities and bonds. Companies raise capital by selling their securities, which consists of stocks and bonds. The sale and purchase of these items happen in the capital market. Companies in the public as well as the private sector domains indulge in the trade of financial securities.The capital market is again composed of the stock market and bond market.

Stock Market:This is the realm of publicly traded companies. A publicly traded company raises capital by issuing stocks. With the purchase of each stock, the buyer owns a small share of this company. In short, the company distributes its ownership through the trade of stocks. As the company records profits, so do the shareholders. It is, therefore, a win-win.

Cash Market: The market where the transaction between buyers and sellers are settled in real-time.

Futures Market: Futures market is one where the delivery or settlement of commodities takes place at a future specified date.

Etc.

Add a comment
Know the answer?
Add Answer to:
Write a brief “Overview of Global Financial Market” Areas to be covered :- Money Market and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT