Where two organisations or people are engaged in exchange of products or services in terms of money is called Market. There are two components in the market: 1. Purchaser or Buyer, 2. Merchant or seller.
The purchaser and merchant are involved in a market, where purchaser buys products or services from the merchant or vender with the exchange of cash.
A spot where people are engaged in any sort of monetary exchange is known as financial market. It is a place where purchasers and vender are engaged in dealing with economical or monetary items like stocks, oil, mutual fund, gold and bonds etc.
The following are the different sorts of financial markets:
A business place where people contribute for a long period i.e. over a year is known as capital market. In that market different business organisation collect capital from people and invest it.
There are two types of capital market :
- Primary Market: It is a type of place where different organizations issue new shares, bond, stock and securities to the people and financial specialists as IPO’s (Initial Public Offering). This market is a type of place where shares and securities are issued by the company for the 1st time.
- Secondary Market: it is a type of place where shares and securities are traded which has been already issued.
Different sorts of Capital Market
- Stock Markets: It is a sort of market which deals the buying and selling of stock and shares of different listed company at a specific price.
- Bond Markets: Where the traders are engaged with trading bonds is known as Bond Market. anging of securities.
- Commodity Market: A kind of market which is involved with trading goods is known as Commodity Market. Same as other market it has also the seller and buyer of the commodity. In this market the traders deals with oil, gold, rice, wheat, grain, etc at a rate which is determined by supply and demand of the market.
- Money Market: Money market involves with the people who borrow and lend money to the organisation for a short period .
- Derivatives Market: This is a kind of market which deals with the contracts for trading the derived financial items.
- Future Market: This market is a place which deals with the exchanging of financial items or instruments at a particular rate and the delivery of the items will occur in future.
- Insurance Market: This market sells insurance products to the people and business organisations. If there is any accident then the insurance company will responsible for payment which will claim by clients.
- Foreign Exchange Market: This is a kind of market where the global organisations are involved with trading different currencies of many countries of the world.
- Private Market: Where two parties directly engaged with trading financial products is known as private market.