Financial Markets

Posted on the January 26th, 2010 under Investment Banking by Arun Vijayaraghavan

A financial market is defined as a market place where all financial instruments are sold and bought.  All companies and government organizations raise capital from the public either for short term or long term financial requirements through these financial markets.

Generally, all financial markets can be categorized as below:

  • Capital Market – Used to raises long term capital
  • Money Market – Used to raise short term capital
  • Derivatives Maket – Securities who’s value is derived from the underlaying aspect of other securities.
  • Insurance Market – Selling securities which are a type of risk management
  • Foreign Exchange Market - Trading one curreny against the other 
  • Commodity Market – Trading common commodities such as rice, sugar, steel, etc.,

Depending on the entity’s financial requirement, they would either engage in Capital market or Money Market to raise their capital.

Please mail me in case you need to discuss on any specific topic under financial markets.

Thanks,

 Arun

 

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