If you know about Financial System, you may already know the financial market. Either you can learn about the financial systems by clicking here.
Financial market; Yes, it is just another market. We know about the regular market, there are sellers and buyers along with goods or services. Sellers are trying to sell their goods or services on the other side buyers are trying to buy them.
Unlink those regular market financial markets represents where the financial assets or financial instruments are being traded.
Now let’s find it out what are the financial instruments or financial assets. The most common financial assets are; stocks, bonds, mutual funds, certificates of deposit, and so on.
The financial market can be classified into the following markets;
- Capital Markets; consists of Debt market and Equity Markets.
2. Money Markets; refers to short-term funding. The market deals with short-term loans or deposits. Like as; call money ( Intra bank cash borrowing for short-term in many countries), Certificates of Deposit (CDs), Commercial Paper, Banker’s Acceptances, Repos, T-bills.
3. Futures Markets; Buy or sell contracts on a specific future date for commodities, currency, or securities.
4. Commodity Markets; Raw materials like oil are traded in this market.
5. Derivatives Markets;
6. Insurance Markets.
7. Foreign Exchange Markets
