CLASSIFICATION OF FINANCIAL MARKETS:
1.Domestic Market:
1.1 Capital Market-It is a types of financial market where capital is raised by companies by issuing Shares,Bonds abd other Long term investments.
1.2 Money Market-It is types of financial market where trading of short term loan between banks and other financial institutions.if one bank required money,it can be borrowed from another bank for short duration of times may be 1-2 days.
1.3 Bill Market-It also a types of financial market where bank can lend money against the bill.it is also known as bill discounting.
1.4 Bank - Bank is also an important part of financial market,where deposit and lending of money takes places.
1.5 Forex Market - It is a types of financial market where trading of currencies taking places,here one can buy doller by paying rupee or vis a versa.
2.International Market:
2.1 Equity- It is types of financial market where shares are traded on different stock exchanges of different countries.
2.2 Debt- It also another types of financial market run internationally where trading of debt instruments like bonds ,commercial papers, mortgages ect takes places.
2.3 Forex - It is largest financial market in the world where exchanges of different countries currencies takes places.
STRUCTURE OF FINANCIAL MARKETS:
1. Organized sector:
1.1 Money market
1.1.1 Call money market - It is a short term money market,which allows large financial institutions like Banks , Mutual funds ect to borrowed at inter bank rate.it is for a very short duration of time ,may be between hours to one week.
1.1.2 Treasury bill- It is types of securities issued by the government at discounted rate.
1.1.3 CP -Commercial papers are a types of short term unsecured instruments issued by the corporates,it is used to finance account recievable,inventory and short term liabilities.
1.1.4 CD's- Certificate of deposit is issued by the banks in order to accept deposits form the public,it carry fixed interst rate and redeem on maturity period.
1.2 Capital market
1.2.1 Equity
1.2.1(1) IPO - It is a initial public offer,which is issued when the company going public and issued it's share first time to the public.After some time it is been listed on stock exchange,allows investors to exits or allows new investors to enter into the company.
1.2.1(2) New issue-It is refer to the issuing share of company to the public first time.
1.2.1(3) Secondary market- It is a market where shares are traded on stock exchange,where different buyers and sellers do trading on different shares,here company has no role to play in dealing of shares.
1.2.2 Debts
1.2.2(1) Corporates securities - It a types of debts instruments issued by the corporate housed,which carry fixed intrest rate and also a fixed maturity.
1.2.2(1) Government securities - It is another types of debt instruments issued by the government,carry fixed intrext rated and fixed maturity.
1.3 Bank market
1.3.1 Schedule commercial banks - These are the banks which accept deposits from the public and lend it on higher rate to the borrowers,there main aims is to earn profits.
1.3.2 Co-operative banks- These banks are run by a group of people or society,for the welfare of the member of a society or a particular group.
1.3.3 Development banks - These are a banks which helps in the development of the country by providing loans to the company related to development of infrastructure or any govt project helps in country's development.
1.3.4 NBFC'S- These are a non banking finance companies(NBFC's),providing loand to the borrowers and accept deposit through debts instruments.
1.4 Foreign exchange market
1.4.1 Merchant -He is a types of dealer helps in dealing in foreign exchange at al large scale.
1.4.2 Interbank - Here the foreign exchange is takes place between different banks.
1.4.3 Offshore -Foreign exchane market run on international level ,here one can deal in any country all over the world.
2.Unorganized sector:
2.1 Indiginous bank- There are a types of financial markets work in unorganized market,where accept deposit from the public at lower rate and lend it on higher interest rate to borrowers.
2.2 Money lenders- These are a types of people lend money to the needy people at very high interst rate without any securities,this types of activities mainly illigal in market.
1.Domestic Market:
1.1 Capital Market-It is a types of financial market where capital is raised by companies by issuing Shares,Bonds abd other Long term investments.
1.2 Money Market-It is types of financial market where trading of short term loan between banks and other financial institutions.if one bank required money,it can be borrowed from another bank for short duration of times may be 1-2 days.
1.3 Bill Market-It also a types of financial market where bank can lend money against the bill.it is also known as bill discounting.
1.4 Bank - Bank is also an important part of financial market,where deposit and lending of money takes places.
1.5 Forex Market - It is a types of financial market where trading of currencies taking places,here one can buy doller by paying rupee or vis a versa.
2.International Market:
2.1 Equity- It is types of financial market where shares are traded on different stock exchanges of different countries.
2.2 Debt- It also another types of financial market run internationally where trading of debt instruments like bonds ,commercial papers, mortgages ect takes places.
2.3 Forex - It is largest financial market in the world where exchanges of different countries currencies takes places.
STRUCTURE OF FINANCIAL MARKETS:
1. Organized sector:
1.1 Money market
1.1.1 Call money market - It is a short term money market,which allows large financial institutions like Banks , Mutual funds ect to borrowed at inter bank rate.it is for a very short duration of time ,may be between hours to one week.
1.1.2 Treasury bill- It is types of securities issued by the government at discounted rate.
1.1.3 CP -Commercial papers are a types of short term unsecured instruments issued by the corporates,it is used to finance account recievable,inventory and short term liabilities.
1.1.4 CD's- Certificate of deposit is issued by the banks in order to accept deposits form the public,it carry fixed interst rate and redeem on maturity period.
1.2 Capital market
1.2.1 Equity
1.2.1(1) IPO - It is a initial public offer,which is issued when the company going public and issued it's share first time to the public.After some time it is been listed on stock exchange,allows investors to exits or allows new investors to enter into the company.
1.2.1(2) New issue-It is refer to the issuing share of company to the public first time.
1.2.1(3) Secondary market- It is a market where shares are traded on stock exchange,where different buyers and sellers do trading on different shares,here company has no role to play in dealing of shares.
1.2.2 Debts
1.2.2(1) Corporates securities - It a types of debts instruments issued by the corporate housed,which carry fixed intrest rate and also a fixed maturity.
1.2.2(1) Government securities - It is another types of debt instruments issued by the government,carry fixed intrext rated and fixed maturity.
1.3 Bank market
1.3.1 Schedule commercial banks - These are the banks which accept deposits from the public and lend it on higher rate to the borrowers,there main aims is to earn profits.
1.3.2 Co-operative banks- These banks are run by a group of people or society,for the welfare of the member of a society or a particular group.
1.3.3 Development banks - These are a banks which helps in the development of the country by providing loans to the company related to development of infrastructure or any govt project helps in country's development.
1.3.4 NBFC'S- These are a non banking finance companies(NBFC's),providing loand to the borrowers and accept deposit through debts instruments.
1.4 Foreign exchange market
1.4.1 Merchant -He is a types of dealer helps in dealing in foreign exchange at al large scale.
1.4.2 Interbank - Here the foreign exchange is takes place between different banks.
1.4.3 Offshore -Foreign exchane market run on international level ,here one can deal in any country all over the world.
2.Unorganized sector:
2.1 Indiginous bank- There are a types of financial markets work in unorganized market,where accept deposit from the public at lower rate and lend it on higher interest rate to borrowers.
2.2 Money lenders- These are a types of people lend money to the needy people at very high interst rate without any securities,this types of activities mainly illigal in market.
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