FINANCIAL

MARKETTING
CONTENTS
• FINANTIAL MARKETING
• RELATIONSHIP BETWEEN LENDER & BRROWER
• CAPITAL MARKETTING (FUNCTIONS AND INSTRUMENT)
• MONEY MARKET (FUNCTIONS AND INSTRUMENTS)
FINANCIAL MARKET

Any marketplace where buyers and sellers participate in the trade of financial securities, commodities,
and other fungible items of value at low tranctions costd and at prices that reflects supply and
demand. Securities include precious metals or agriculture goods.

There are both generals markets (where many commodities are traded ) and specialized markets
(where only one commodity is traded).

In finance. Financial markets facilitates:

• The raising of capital(in the capital markets)
• The transfer of rish(in the derivatives markets)
• Price discovery
• Globel tranctions with integration of financial markets
• The transfer of liquidity (in the money markets)
• International trade (in the currency markets)
SECURITIES
• Typically a borrower issues a
receipt to the lender promising to
pay back the capital. These
receipts are securities which may
be freely bought or sold. In return
for lending money to the borrower
the lender will expect some
compensation in the form of
intrest or dividends. This return
on investment is a necessary part
of markets to ensure that funds
are supplied to them.
 RELATIONSHIP BETWEEN LENDERS AND
BORROWERS
FINANCIAL
FINANCIAL
LENDERS INTERMEDIAR BORROWERS
MARKETS
Y

• BANKS • INTERBANK • INDIVIDUALS

• INDIVIDUAL • INSURANCE • STOCK • COMPANIES
• COMPANIES EXCHANGE • CENTRAL
COMPANIES • MONEY GOVERNMENT
• PENSION MARKET • MUNICIPALITIE
FUNDS • BOND MARKET S
• MUTUALS • FOREIGN • PUBLIC
FUNDS EXCHANGE CORPORATION
 FINANCIAL MARKET CHART

FINANCIAL
MARKET

FOREIGN
CAPITAL COMODITY MONEY DERIVATIVES INSURANCE
EXCHANGE
MARKET MARKET MARKET MARKET MARKET
MARKET

PRIMARY
ORGANISED
MARKET

SECONADRY
UNORGANISED
MARKET
 DIAGRAM
CAPITAL
MARKET

FINANCIAL
MARKET

MONEY
MARKET
CAPITAL MARKET

 Capital market is a market for financial assets which have a long or idefinite matuarity. Unlike
money market insturmenent the capital market instrument becomes mature for the period above
one year.

 The capital markets may also be devided into PRIMARY MARKETS and SECONDARY MARKETS .
Newly formed (issuied ) securities are bought or soldin primary markets such as during intials
publics offerings . Secondary markets allow investors to buy and sell existing securities. The
transtions in primary markets exists between issuers and investors, while in secondary markets
tranctions existc amongs investors.

 These institute play the role of lenders in the capital markets . Business units and corporate are
the borrowers in the capital market.
INSTRUMENT OF CAPITAL MARKET

STOCKS

BONDS

DEBENTURES
• THE MARKETS • The • A certificate
IN WHICH enviroments in issued by a
SHARES ARE which the corporation
ISSUED AND issuance and with the
TRADED rading of debt purpose of
EITHER securities creating a debt.
THROUGH occurs. The Debentures are
EXCHANGE OR bonds market generally
OVER THE primarily unsecured by
CUNTER includes assets and are
MARKETS AS governments intrest bearing
THE EUITY issued securities
MARKET securities and
corporate debt
securities.
INSTRUMENT OF CAPITAL MARKET

TREASURY BILLS

FIXED DEPOSITS
FOREIGN EXCHANGE
• A short • The market • FDs are the
term in which deposits
obligation participant that are
thet is not are able to repayable
intrest- buy , sell, on fixed
bearing (it exchange matuarity
is and date along
purchased speculate on with the
at a cerriencys. principal
discount) ; and agreed
can be intrest rate
traded on a for the
discount period .
basics for
91 days.
ROLE OF CAPITAL MARKET

SERVICE
PROVISIONS
SPEED UP
PROVISION OF ECONOMICS
INVESTMENT GROWTH
CAPITAL AVENUE AND
FORMATIONS DEVELOPME
MOBILISATION NTS
OF SAVINGS
MONEY AND MARKET
• As money became a commodity the money maret became a component
of the financial markets for assets involved in short term borrowing ,
lending, buying , and selling with original maturities of one yesr or less.
Trading in the money markets is done over the counter is wholesale.
ORGANISED MONEY MARKET

• Here lending and borrowing

THE CALL MONEY transaction are carried out for one day

THE TREASURY • It deals in treasury bills of short term

BILL MARKET duaration.

THE COMMERCIAL •
It deals in bills of exchange.
BILL MARKET
ORGANISED MONEY MARKET

THE • The main purpose of CD is to

CERTIFICATE
enable the commercial banks to
DEPOSITS
MARKET raise funds from the market.

Money MARKET • The MMMFs provide an

MUTUAL additional short term avenue to
FUNDS(MMMFs) the individuals investors.
UNORGANISED MONEY MARKET

INDIGENOUS • These are individuals or private firms who

receive deposits and give loans .
BANKERS(IBs)

MONEY • They lend money in rural areas as wells as

urbans areas.
LENDERS (MLs)
• They collets funds from the members for the
CHITS FUNDS purpose of lending to member for personal or
other perpose.
UNORGANISED MONEY MARKET

FINANCE • They act as middlemen between lenders

and borrowers
BROKERS

• They operate throughout the country .

FINANCE They borrow or accept deposits and lend
them to others. They provide funds to
COMPANIES small traders and other
MONEY MARKET INSTRUMENTS
BILL
REDISCOUNTIN
G

CERTIFICA
TREASURY
TES OF
BILLS
DEPOSITS

INTER BANK COMMERCIAL

TER MONEY

INTER BANK
PARTICIPATIN
CERTIFICATE
THANK YOU