Types of Financial Market

Types of Financial Market


Financial Market
A market consists of financial instruments and other means and that are offered, issued and traded to provide opportunities of raising business fund by a company called financial market.

A financial market offer financing to the required needies.


Financial Market is two types:

1. Capital Market:
Capital market means a market consists of the instruments offered and issued by a public limited company for raising their business capital for a long period of time (generally one year to 10 or more).

Capital market is also two types:

1. 1 Primary Market: A market consists of new financial instruments like IPO Shares, Bonds, mutual funds and other securities that is offered first time to the public investors for rising business fund of a public limited company for the long time is called primary market.

1. 2 Secondary Market : A market consists of old financial instruments like Shares, Bonds, mutual funds and other securities that is already issued (Already exist in the market) by a public limited company for the long time to for rising business fund is called secondary market.


2. Money market:
Money market means a Market consists of financial institutions and instruments other than the instruments of capital market. In money market various commercial instruments like bill of exchange, are traded along with borrowing and lending opportunities between institution and institution or institution and individual for a short period of time (less than one year).



You may have interest about the followings
Types of Capital Market
Types of Market
Defination of Money market
What is Dividend ?