financialmarket正版分享[共10页].pptVIP

Main Contents Financial Market Types of Financial Markets Functions of Financial Markets Made by A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Different Types of Financial Markets Capital Market Capital Market consists of primary market and secondary market. In primary market newly issued bonds and stocks are exchanged and in secondary market buying and selling of already existing bonds and stocks take place. So, the Capital Market can be divided into Bond Market and Stock Market. Bond Market provides financing by bond issuance and bond trading. Stock Market provides financing by shares or stock issuance and by share trading. As a whole, Capital Market facilitates raising of capital. Money Market Money Market facilitates short term debt financing and investment. Derivatives market Derivatives Market provides instruments which help in controlling financial risk. Foreign Exchange market Foreign Exchange Market facilitates the foreign exchange trading. Insurance Market Insurance Market helps in redistribution of various risks. The functions of financial market mainly includes two aspects -- Intermediary Functions Financial Functions ?The intermediary functions of a financial markets include the following: 1.Transfer of Resources: Financial markets facilitate the transfer of real economic resources from lenders to ultimate borrowers. 2.Enhancing income: Financial markets allow lenders to earn interest or dividend on their surplus invisible funds, thus contributing to the enhancement of the individual and the national income. 3.Productive usage: Financial markets allow for the productive use of the funds borrowed. The enhancing the income and the gross national production. 4.Capital Formation: Financial markets pr