FINANCIAL MARKETS


 Financial Markets
  • The financial market is a market where trading of securities including equities, bonds, currencies and derivatives takes place. Financial market can be divided into money market and capital market. Money market is a market for short term securities having a maturity period of less than one year. 
  • Capital Market is a market for long term securities having a maturity period of more than one year. Further, capital market can be divided into primary market and secondary market.
  •  In primary market, securities (shares, bonds, debentures) are issued to the public for the first time. While in secondary market, trading (purchase and sale) takes place in those securities are already issued to the public.

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