Wednesday 22 August 2012

Classification of financial markets



Financial markets can be classified into different categories depending on the nature of the market, or used to create a category. There are two differences in the financial markets. The main market is the market for the sale of new and existing secondary market for the securities. Capital market is the market for trading securities and long-term issues on the one hand and the market is in short-term securities, on the other hand,.
In general terms, the market is highly liquid, short-term borrowing and lending occurs. The loans are short-term investments in this market. On the one hand, all bank records for the current account is a checking account, money market, etc.. 


In terms of financial markets, money market exists for the purpose of issuing and trading of securities on a short-term instruments, the rest of the trading takes place on the redemption of the loan as shown by the tool. death (commonly referred to as. "Term to maturity") is a short-term nature. In theory, a term used to classify a financial instrument will be for one year. In practice, however. (Especially in Africa) instruments with maturities of three years or less is a money market instrument, although this is not a hard and fast rule.
For purposes of control, typology classic financial markets realize the significant difference following.



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