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What is Financial market.




 


Financial market :


A market is define as a place where any type of trade take place with the major depedent of two participants- buyer and sellers.
This market vary in form,scale,location,type of participant and as well as the type of good and services taded hence there is non exhaustive list of market.
Classification of financial market.

1) Money market
2) Capital market.

1 Money market 
  The money market is the market for financial assets which are the close substitude for money. It is a market for short term debt instrument that have a maturity period of less than or up to one year. It include treasury bills, commercial paper, banker acceptance, certificate of deposit.

2 capital market



     Capital market is a market for long term securities such as equity and debt. This market aims at raising capital on long term basis for a period over one year. it act as a platformwhere the public and private sectors often sell there stakes to raise fund.
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The analogy I have used might not be 100% correct but it’s easy to understand things with a simpler analogy.


That’s it for this post. Do check out my other posts to gain more knowledge about finance.
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