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    Financial Market: by DR Sheeba Kapil

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    Rakesh Arora
    Financial markets act as channels to efficiently allocate savings to investment opportunities. They have two major components: the money market and the capital market. The money market deals in short-term funds with maturities up to one year through liquid instruments and facilitates central bank intervention to influence liquidity. The capital market raises intermediate and long-term funds for businesses, governments, and individuals through new security issuances in the primary market and trading of existing securities in the secondary market.

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    Financial Market: by DR Sheeba Kapil

    Uploaded by

    Rakesh Arora
    160 views9 pages
    Financial markets act as channels to efficiently allocate savings to investment opportunities. They have two major components: the money market and the capital market. The money market deals in short-term funds with maturities up to one year through liquid instruments and facilitates central bank intervention to influence liquidity. The capital market raises intermediate and long-term funds for businesses, governments, and individuals through new security issuances in the primary market and trading of existing securities in the secondary market.

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    Finance-class 1-ppt

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    Financial markets act as channels to efficiently allocate savings to investment opportunities. They have two major components: the money market and the capital market. The money market deals in short-term funds with maturities up to one year through liquid instruments and facilitates central bank intervention to influence liquidity. The capital market raises intermediate and long-term funds for businesses, governments, and individuals through new security issuances in the primary market and trading of existing securities in the secondary market.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    160 views9 pages

    Financial Market: by DR Sheeba Kapil

    Uploaded by

    Rakesh Arora
    Financial markets act as channels to efficiently allocate savings to investment opportunities. They have two major components: the money market and the capital market. The money market deals in short-term funds with maturities up to one year through liquid instruments and facilitates central bank intervention to influence liquidity. The capital market raises intermediate and long-term funds for businesses, governments, and individuals through new security issuances in the primary market and trading of existing securities in the secondary market.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 9

    Financial Market

    By Dr Sheeba kapil

    Financial markets
    Act as medium/ channels for allocation of savings to
    investment.
    Efficient transfer of money from those having idle
    resources to others who have a pressing need for them
    The financial markets have two major components:
    Money market
    Capital market.

    Money Market
    market for short-term funds with maturity ranging from
    overnight to one year
    financial instruments are liquid :very close substitutes of money.
    Money Market transactions are done over the counter i.e. done
    directly between two parties.
    The money market performs three broad functions.
    It provides an equilibrating mechanism for demand and supply
    of short-term funds.
    It provides an avenue for central bank intervention in
    influencing both quantity and cost of liquidity in the financial
    system, thereby transmitting monetary policy impulses to the
    real economy.

    MONEY MARKET : MAIN INSTRUMENTS, PARTICIPANTS

    Capital Market
    The Capital Market comprises
    the complex of institutions and mechanisms through which
    intermediate term funds and long-term funds are pooled
    and made available to business, government and
    individuals.
    It is the market for securities where either companies or the
    government can raise long term funds.
    The capital market actually consists of two markets.
    1.primary market -where new issues are distributed to
    investors
    2.secondary market - where existing securities are traded.

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