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    Financial Market Types

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    lalisst9905
    The document discusses different types of financial markets including money markets, capital markets, primary markets, secondary markets, over-the-counter markets, and commodity markets. It also discusses the four main types of financial markets which are debt securities markets, equity securities markets, derivative securities markets, and foreign exchange markets.

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    Financial Market Types

    Uploaded by

    lalisst9905
    11 views1 page
    The document discusses different types of financial markets including money markets, capital markets, primary markets, secondary markets, over-the-counter markets, and commodity markets. It also discusses the four main types of financial markets which are debt securities markets, equity securities markets, derivative securities markets, and foreign exchange markets.

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    Financial market types

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    The document discusses different types of financial markets including money markets, capital markets, primary markets, secondary markets, over-the-counter markets, and commodity markets. It also discusses the four main types of financial markets which are debt securities markets, equity securities markets, derivative securities markets, and foreign exchange markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    11 views1 page

    Financial Market Types

    Uploaded by

    lalisst9905
    The document discusses different types of financial markets including money markets, capital markets, primary markets, secondary markets, over-the-counter markets, and commodity markets. It also discusses the four main types of financial markets which are debt securities markets, equity securities markets, derivative securities markets, and foreign exchange markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Money Market: Money markets are where debt securities with maturities of one year or less are

    issued and traded. These markets are generally characterized by high liquidity. Securities in these
    markets can be easily sold or traded with little loss of value. These short-lived securities generally
    have low returns and low risk. The securities traded in these markets include; Treasury Bills,
    Certificates of Deposit, Commercial Paper, etc. Capital markets: Capital markets are where debt
    instruments or securities with maturities longer than one year and corporate stocks or equity
    securities are issued and traded. Capital market securities are generally issued to finance the
    purchase of homes by individuals, buildings and equipment by businesses, and for provision of
    infrastructure (roads, bridges, buildings, etc.) by governments. Business firms and governments issue
    long-term debt securities, called bonds, to finance their assets and operations. Mortgages are issued
    to finance homes and buildings. Corporations also issue stocks to meet their financing needs.
    Financial Markets: Types and Features Primary Market: primary market is the market where the
    Initial Public Offering (IPO) or origination of debt and equity securities takes place. The primary
    market is the only market where the security issuer directly benefits (receives funds) from the sale of
    its securities. Secondary Market: Secondary are markets where the transfer of existing debt (bonds
    and mortgages) and equity securities between investors occurs. This is a physical located or
    electronic forums where debt (bonds and mortgages) and equity securities are traded. Over-the-
    counter Markets: An over-the-counter (OTC) market is a decentralized market in which market
    participants trade stocks, commodities, or other securities directly between two parties and without
    a central exchange or broker. Commodity Markets: A commodity market is a market that trades in
    the primary economic commodities rather than manufactured products. This commodities include
    gold, silver, cocoa, cotton, petrol, gas, dollar, euro, etc. Commodity markets can include physical
    trading and derivatives trading using spot prices, forwards, futures, and options prices. Financial
    Markets: Types and Features There are four main types of financial markets, namely; debt securities
    markets, equity securities markets, derivative securities markets, and foreign exchange markets. Debt
    Securities Markets: Debt securities are obligations to repay borrowed funds. Debt securities markets
    are markets where money market securities, bonds (corporate, financial institution, and
    government), and mortgages are originated and traded.  Bond Markets: Bond markets are form of
    debt securities market, they are where debt securities with longer-term maturities are originated and
    traded. Government entities (federal, state, and local), financial institutions, and business firms can
    issue bonds.  Mortgage Markets: Mortgage markets are where loans to purchase real estate
    (buildings and houses) are origina

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