This thread is meant for learning and understanding about the financial markets. I am a student completing my degree (B com. Financial Markets) with a focus on building a career in Finance and Investment. I am going to share here what I learned and learning. I know that there are very much senior members here and I request them to correct me where and when required.
FINANCIAL MARKETS :- Market where financial securities and commodities are traded. Securities include stocks and bonds where as commodities include precious metals, other metals, oil, agricultural products etc.
We know that, money always flows from surplus sector to deficit sector. That means
persons having excess of money lend it to those who need money to fulfill their requirement.
Similarly, in business sectors the surplus money flows from the investors or lenders to the
businessmen for the purpose of production or sale of goods and services. So, we find two
different groups, one who invest money or lend money and the others, who borrow or use
the money. Markets act as a link between these two different groups. It facilitates this function by acting as an intermediary between the borrowers and lenders of money. So, financial market may be defined as ‘a transmission mechanism between investors (or lenders) and the borrowers (or users) through which transfer of funds is facilitated’. It consists of individual investors, financial institutions and other intermediaries who are linked by a formal trading rules and communication network for trading the various financial assets and credit
instruments.
Financial Market consist of two segments which are money market and capital market. Money market deals with short term securities (less than one year) and some of the money market instruments are Treasury bills, certificate of deposits, commercial papers, call money, money market mutual funds etc. Capital market deals with medium and long term securities like equity shares, bonds, debentures
FINANCIAL MARKETS :- Market where financial securities and commodities are traded. Securities include stocks and bonds where as commodities include precious metals, other metals, oil, agricultural products etc.
We know that, money always flows from surplus sector to deficit sector. That means
persons having excess of money lend it to those who need money to fulfill their requirement.
Similarly, in business sectors the surplus money flows from the investors or lenders to the
businessmen for the purpose of production or sale of goods and services. So, we find two
different groups, one who invest money or lend money and the others, who borrow or use
the money. Markets act as a link between these two different groups. It facilitates this function by acting as an intermediary between the borrowers and lenders of money. So, financial market may be defined as ‘a transmission mechanism between investors (or lenders) and the borrowers (or users) through which transfer of funds is facilitated’. It consists of individual investors, financial institutions and other intermediaries who are linked by a formal trading rules and communication network for trading the various financial assets and credit
instruments.
Financial Market consist of two segments which are money market and capital market. Money market deals with short term securities (less than one year) and some of the money market instruments are Treasury bills, certificate of deposits, commercial papers, call money, money market mutual funds etc. Capital market deals with medium and long term securities like equity shares, bonds, debentures
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