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Exploring the details of financial market.

 

It is a place where financial instruments are bought and sold, and where buyer and the seller come together for buying and selling of financial instruments. It is a place where buyer and seller contact and participate in trading of financials instruments which is known as financial market. Any marketplace where the trading of securities occurs, including the stock market, bond market, forex market and derivatives market, among others.

Type of financial market:-  

  1. Money market 
  2. Capital market
  3. Credit market
  4. Forex market

Money market:- 

It is a designed to finance the short-term investment, which is highly dominated by banks, money market instruments are highly liquid and low risky. They have short term maturity, less than a year.  In this money market they use instruments like treasury bills or commercial papers as security. Which helps company's and government for raising capital.


Capital market:-

It is designed to finance long term investments, it deals with the transactions which are taking in the market for more than one year. two parts of capital market - primary market, secondary market. they help people with idea entrepreneurs and help small business grow into a big company. 

  1. Primary market:-  the primary market refers to the financial market where new securities, such as bond, stock or other financial instruments are issued and initially sold to investors. This is typically done through an initial public offering for stock or bond issuance.
  2. Secondary market:-  Also known as the aftermarket, is where existing financial instruments such as stock, bonds and derivative are bought and sold by investors, its distinct from the primary market. where these instruments are initially issued.

Credit market:-

A place where short term and long-term loans are provided to individuals and organizations by various banks, financial and non-financial institutions is called credit market. where investors and institutions can buy debt securities such as bond.  issuing debt securities is how governments and corporation raise capital, taking investors' money while paying investors. 


Forex market:- 

It is a place where trade is made for multicurrency's. the transfer of funds in this marketplace takes place in accordance foreign currency rate.


 Current news about finance market- deeper capital market to boost India overall economic and financing capacity as of 2022 end, commercial banks owned 38.0% of state and government debt securities, while insurance companies held a further 25%, reserve bank of India data shows. this implies combined aggregate holding of 60 trillion Indian rupees.

A new market is created if your product enables a large number of customers to do something they were unable to do before you came along.

biggest financial market is new york stock exchange (NYSE), is the world's largest stock exchange located at 11 wall street, new york city, USA.

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