Sunday, September 12, 2010

Financial Markets types

Financial markets can be divided into different subtypes:

For the transferred assets

  • Money Market: The trading with money or financial assets with a maturity of short-term, highly liquid assets usually within less than a year.
  • Capital markets: financial assets are traded with a maturity of medium and long term basis to carry out certain processes of investment.
  • Stock markets, which provide financing through the issuance of shares and allow the subsequent exchange of these.
  • Bond markets, which provides financing through the issuance of bonds and allow the subsequent exchange of financial marketing estos.el is one way by which esclarem diversity of financial generosity.

Depending on their structure can be

  • Organized markets.
  • Unorganized market is called in English ("Over The Counter").

According to the negotiation of financial assets

  • Primary markets: financial assets are created. In this market the assets are transferred directly by the issuer
  • Secondary market: Only exchange existing financial assets, which were issued at an earlier time. This market allows holders of financial assets and sell the instruments that were issued in the primary market (or that had already been transmitted on the secondary market) and are in his possession, or purchase other financial assets. (Lilibet)

Other markets

  • Commodities markets, allowing trading commodities.
  • Derivatives markets, which provides tools for financial risk management.
  • Forwards markets, which provide standardized forward contracts for trading products at some future date, see also forward.
  • Insurance markets, allowing the redistribution of various risks, see the insurance contract.
  • Foreign exchange market, which allows the exchange of foreign currencies or currency.

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