This article throws light upon the top two types of financial market. The types are: 1. Money Market 2. Capital Market. Financial Market: Type # 1. Money Market: The term money market is used in a composite sense to mean financial institutions which deal with short-term funds in the economy. It refers to the institutional arrangements facilitating borrowing and lending [...]
This article throws light upon the top seven characteristics of a developed money market. The characteristics are: 1. A Developed Commercial Banking System 2. Presence of a Central Bank 3. Sub-markets 4. Near Money-assets 5. Availability of Ample Resources 6. Integrated Interest-rate Structure 7. Other Factors. Characteristic # 1. A Developed Commercial Banking System: For a developed money market not [...]
This article throws light upon the three main components of capital market. The components are: 1. New Issue Market 2. Secondary Market 3. Financial Institutions. Capital Market: Component # 1. New Issue Market: The new issue market represents the primary market where new securities, i.e., shares or bonds that have never been previously issued, are offered. Both the new companies [...]