Definition: Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country’s economy. It acts as an intermediary between the savers and investors by mobilising funds between them.
From the beginning, social networks have been effectively walled off from the Internet. The treasure trove of content on Facebook, for instance, doesn't generally show up on Google (GOOG). But does it have to be that way? Wouldn't it be convenient to see Twitter search results automatically displayed alongside a standard Google search, for example? And why, for instance, don't the latest tweets about a restaurant pop up when you're searching Yelp (YELP)? The competing interests of different networks sends this content behind proprietary walls, but a number of tools offer creative ways to bridge the gulf. (Full disclosure: My company has developed one such tool.)
Functions of Financial Market
- It facilitates mobilisation of savings and puts it to the most productive uses.
- It helps in determining the price of the securities. The frequent interaction between investors helps in fixing the price of securities, on the basis of their demand and supply in the market.
- It provides liquidity to tradable assets, by facilitating the exchange, as the investors can readily sell their securities and convert assets into cash.
- It saves the time, money and efforts of the parties, as they don’t have to waste resources to find probable buyers or sellers of securities. Further, it reduces cost by providing valuable information, regarding the securities traded in the financial market.
The financial market may or may not have a physical location, i.e. the exchange of asset between the parties can also take place over the internet or phone also.
Classification of Financial Market
- By Nature of Claim
- Debt Market: The market where fixed claims or debt instruments, such as debentures or bonds are bought and sold between investors.
- Equity Market: Equity market is a market wherein the investors deal in equity instruments. It is the market for residual claims.
- By Maturity of Claim
- Money Market: The market where monetary assets such as commercial paper, certificate of deposits, treasury bills, etc. which mature within a year, are traded is called money market. It is the market for short-term funds. No such market exist physically; the transactions are performed over a virtual network, i.e. fax, internet or phone.
- Capital Market: The market where medium and long term financial assets are traded in the capital market. It is divided into two types:
- Primary Market: A financial market, wherein the company listed on an exchange, for the first time, issues new security or already listed company brings the fresh issue.
- Secondary Market: Alternately known as the Stock market, a secondary market is an organised marketplace, wherein already issued securities are traded between investors, such as individuals, merchant bankers, stockbrokers and mutual funds.
- By Timing of Delivery
- Cash Market: The market where the transaction between buyers and sellers are settled in real-time.
- Futures Market: Futures market is one where the delivery or settlement of commodities takes place at a future specified date.
- By Organizational Structure
- Exchange-Traded Market: A financial market, which has a centralised organisation with the standardised procedure.
- Over-the-Counter Market: An OTC is characterised by a decentralised organisation, having customised procedures.
People are still looking at old masters for pleasure, if not as lucrative investments. Sotheby’s said 6,000 people visited its Dec. 5 to 9 viewing, compared with the 6,400 who saw its Impressionist and contemporary sales in June. At the lower end of the price scale, many historic paintings do find a market — Christie’s and Sotheby’s day sales of old master paintings on Dec. 9 and 10 had solid-enough selling rates of 67 and 65 percent apiece.
Behind the facade of many a New York City apartment building is the dissonant sound of residents complaining. The gripes that make their way to the inbox of my Ask Real Estate column offer a glimpse into how residents cope with the myriad irritations that come with living in cramped and costly homes. They include the co-op shareholder horrified by a neighbor’s rats’ nest; the parents whose building has barred them from using a stroller in the elevator; and the renter whose kitchen cabinets fell from the walls.
China's economic prowess is also seen by outsiders as having stimulated nationalism in a generation removed from the Cultural Revolution. Beijing's belligerent responses to overlapping maritime claims have heightened worries about its security objectives in a region already wary of its economic clout. This is one factor in Japan's decision to relax its ban on weapons exports; to China's dismay, it has also driven its neighbours to support a stronger US presence in Asia and has complicated regional trade integration.