Financial market

Financial market is a broad market where buyers and sellers to exchange various types of financial securities or products that comprise financial securities. Financial Markets serve various purposes to a variety of individuals and corporations. Such markets facilitate investments and purchase of assets. They also facilitate handling of various risks. The financial markets can be divided into different subtypes:

• Capital markets consists of:
  • Stock markets, which facilitates equity investment and buying and selling of shares or common stock.
  • Bond markets, which provides financing through the issue of debt contracts and the buying and selling of bonds and debentures.
• Money markets, which provides short term debt financing and investment.
• Derivatives markets, which provides instruments for handling of financial risks.
• Futures markets, which provide standardised contracts for trading assets at some forward date; see also forward market.
• Insurance markets, which facilitates handling of various risks.
• Foreign exchange markets

These markets can be either primary markets or aftermarkets. Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow owners of the security or the product of securities to buy or sell the same.