TYPES OF

FINANCIAL
MARKETS

Submitted by:
Sandeep Bhagat
21BMS0347
 INTRODUCTION

Financial market is where financial securities like stocks

and bonds and commodities like valuable metals are
exchanged at efficient market prices.
The trading of stocks and bonds in thefinancial market
can take directy between buyers and sellers or by
medium of stock exchange.
Financial market can be domestic or international.
TYPES OF FINANCIAL MARKET

Capital Market Commodity Market

Money Market Derivatives Market

Foreign Exchange Markets

 MONEY MARKET

Money market is a centre for dealing mainly of

01 a short term character, in monetary assets:it
meets the short - term requirement of the
borrowers and provide liquidity or cash to
lenders
Money market become a component of
02 the financial markets for assets involved
in shorts term borrowing, lending, buying
and selling with original maturities of one
year or less.

The central banks, commercial banks, Co-

03 operative banks, saving banks discount
houses etc. are the main constitutes.
FUNCTION OF MONEY MARKET

Transfer of large sums of

money.

Transfer from parties with surplus

funds to parties with a deficit.

Help to implement monetary

Policy.

Allow government to raise Funds.

 CAPITAL MARKET

Generally understood as the market for long

01 term funds . However, also includes the market
for short term funds.

Capital market is the market for all the

02 financial instrumeents , short term and
long-term as also commercial, industrial
and government paper.

it consists of a number of individual and

03 institution that canalize the supply and
demand for long-term capital and claims
on capital.
CONSTITUENTS OF CAPITAL MARKET

Stock Exchange Commercial Banks

Co-operative banks Saving Banks

Developed banks Insurance Companies

Investment trust or
companies
FOREIGN EXCHANGE MARKET

Fem or FX or currency market is a global

01 decentralized market for the trading of
currencies.

The Main partipants in this market are the

02 largest international banks.

The FEM is the most liquid financial

03 market in the market
 COMMODITY MARKET

Commodity market refrs to markets

01 that trade in primary rather than
manufactured products.

02 Commodity market can include

physical trading and derivatives
trading using spot prices,
forwards, futures, and options
on futures.
 DERIVATIVE MARKET

01 Derivative market is the financial market for

derivatives, financial instruments like futures
contracts or options which are derives from
other forms of assets.
 Exchanged-traded
derivatives

Derivative
Market

Over the counter

derivatives
 H A
ANN K
K
TTH .....
O
YYOUU.