write notes on the following
1. Financial markets
2.Capital markets
3.Money markets
4. Equity market
5.Debt market
6.Commodity derivatives markets?
Solution:
Financial Market: A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs. Securities include stocks and bonds, and precious metals. The primary aim of financial market is to mobilise the savings and direct the funds to the most productive use.
A financial market acts a link between the savers and the investors. It provides a platform for the transfer of savings from the households to the investors.
Capital Market: Capital Market mainly deals in the trading of medium and long-term securities that have the maturity period of more than one year. The financial instruments traded in the capital market comprise of equity shares, preference shares, debentures, bonds and other long-term securities. Capital market securities are liquid in nature as they are tradable on stock exchanges, but are less liquid in comparison to the money market securities
Money Market: Money Market deals in the trading of short-term securities wherein, the maturity period can vary from one day to a maximum of one year.The securities traded are highly liquid in nature. Instruments traded in money market comprise of treasury bills, commercial bills, certificate of deposits and other short-term securities.
Equity Market: The equity market or stock market is a place where Equity shares of public companies can be purchased and sell. There shares are listed in stock exchanges. Investors can invest in public or private stocks. Public stocks are traded on exchanges.
Debt Market: Debt market is where investors buy and sell debt securities, mostly in the form of bonds. Investors in the Debt Markets are known as Debt holders
Commodity Derivatives Market: The commodity derivatives market is a place where investors can buy stocks in commodities rather than in major corporations that trade in these commodities. Commodity derivatives are financial instruments whose value is based on underlying commodities, such as oil, gas, metals, agricultural products and minerals.
Financial Market: A financial market is a market in which people trade financial securities and derivatives such as futures and options at low transaction costs. Securities include stocks and bonds, and precious metals. The primary aim of financial market is to mobilise the savings and direct the funds to the most productive use.
A financial market acts a link between the savers and the investors. It provides a platform for the transfer of savings from the households to the investors.
Capital Market: Capital Market mainly deals in the trading of medium and long-term securities that have the maturity period of more than one year. The financial instruments traded in the capital market comprise of equity shares, preference shares, debentures, bonds and other long-term securities. Capital market securities are liquid in nature as they are tradable on stock exchanges, but are less liquid in comparison to the money market securities
Money Market: Money Market deals in the trading of short-term securities wherein, the maturity period can vary from one day to a maximum of one year.The securities traded are highly liquid in nature. Instruments traded in money market comprise of treasury bills, commercial bills, certificate of deposits and other short-term securities.
Equity Market: The equity market or stock market is a place where Equity shares of public companies can be purchased and sell. There shares are listed in stock exchanges. Investors can invest in public or private stocks. Public stocks are traded on exchanges.
Debt Market: Debt market is where investors buy and sell debt securities, mostly in the form of bonds. Investors in the Debt Markets are known as Debt holders
Commodity Derivatives Market: The commodity derivatives market is a place where investors can buy stocks in commodities rather than in major corporations that trade in these commodities. Commodity derivatives are financial instruments whose value is based on underlying commodities, such as oil, gas, metals, agricultural products and minerals.