money market , capital market , foreign exchange

1. MARKET
MONEY MARKET , CAPITAL MARKET
 FOREIGN EXCHANGE
SUBMITTED BY:
V.N.V.SAI RAMESH
SAGAR MOHAN
GOWTHAMAN
SELVA PRABHU
V.NAGARAJESWARI

2. FINANCIAL MARKET
The market where sale & purchase of stocks, commodities,
bills of exchange takes place called financial market.It works
with liquid assets.
FINANCIAL
MARKET
MONEY MARKET
CAPITAL
MARKET

4. MONEY MARKET
 The market which deals with lending of short term funds
i.e. from one day to one year.
 It is the market with high liquidity .
 Short term loans.
 It is also known as bridge finance.

5. Characteristics Of Developed MM
Highly organized commercial banking system
Presence of central bank
Existence of a number of sub markets

6. INSTRUMENTS IN MONEY
MARKET

8. CAPITAL MARKET
market where investment instruments like equity
shares, preference Shares, debentures etc. are traded.
The major role of captive market is make investment
from investors who have surplus funds to ones who
are running deficit.

9. Nature of capital market
 It deals with long term securities.
 Create dispersion in business.
 Performs trade off functions

12. Types of capital market
Capital
market
Primary
market
Secondary
market

13. PRIMARY MARKET
Market in which shares are sold first time.
The money collected from this market is generally
used for collecting long term capital.
Issued to under writers.

14. SECONDARY MARKET
Market where existing shares are traded.
Buying and selling of previously issued securities are
done.
Sale by under writers to public
Features
Encourage investments.
Has a no particular place.
Creates liquidity.

15. Importance of capital market
With out this market there will be no existence of companies..
Encouragement to economic growth::it gives quantitative
and qualitative direction to the flow of funds which cause
economic growth.

16. Functions
 Securing the foreign capital &fill up the deficit in required
resources for economic growth at faster rate.
 Mobilizing of financial resources on a natural wide scale.
Similarities b/n money & capital market
 Same institutions :: e.g. commercial bank
 Inter dependence::the activities & policies of one market
have their impact on other
Differences b/n money market & capital market
 Relation with central bank
 Market regulation.
 Risk.

18. FOREX MARKET
Market in which currency of one country is exchanged with
another country.
It is the market for the free trade of currencies.

19. Foreign
exchange
Foreign
currency
Exchange
rate

20. Foreign exchange
According to Withers "foreign exchange is the art
of international monitory exchange”.

21. Exchange rate
Rate at which one unit of currency of a country can be
exchanged for number of units of another country.
It is also price of which one currency is exchanged with
another.

22. Participants of foreign market

23. Factors influencing exchange rate
Central bank policy.
Interest rates
Imports and exports.
Political factor.
Expectations & rumours.
Tax implications.

24. Important considerations
Speculation is important dimension of forex market incase
of transfer of funds from one country to another.
This market mainly driven by supply & demand
a)buyer exceed seller price go up.
b)seller exceeds buyer price go down.
Advantages
Traders can profit from both short & weak economies
World’s largest market & still growing

26. Thank you!