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Financial Market

In: Business and Management

Submitted By movado35
Words 1075
Pages 5
FINANCIAL MARKETS

FIN 4040A

1. A financial market is the market for capital, a significant factor of production. The obligations created are in form of financial assets or financial instruments severally called securities. These assets are intangible and offer promises and claims by issuers and holders. A classification of the financial markets will greatly improve our mental constructs.

CLASSIFICATION OF FINANCIAL MARKETS

| | Type of classification |Specific operational terms | |
|1 |Nature of claim |DEBT MARKETS | |
| | | | |
| | |EQUITY MARKETS | |
|2 | |MONEY MARKET | |
| | | | |
| |Maturity of claim |CAPITAL MARKET | |
|3 | |PRIMARY MARKET | |
| | | | |
| |Seasoning of claim |SECONDARY MARKET | |
|4 |

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