The document discusses various segments of the international financial market (IFM). The IFM allows buyers and sellers to trade financial assets across borders, motivated by factors like interest rate differences and economic growth prospects. The key segments discussed are the foreign exchange market, international bonds market, international equity market, international money market, and international credit market. The foreign exchange market, being the largest financial market globally, facilitates international trade and transactions through currency conversion. It involves spot rates, forward rates, and participants like importers/exporters. The international bonds market includes foreign and euro bonds that allow companies to raise long-term funds in foreign currencies.

1. INTERNATIONAL
FINANCIAL MARKETS

2. International Financial Market
The international financial market is the worldwide marketplace
in which buyers and seller trade financial assets , such as stocks
, bonds , currencies , commodities and derivatives , across
national borders.

3. Motives for the internationalization of
financial transaction
1:- Differences in interest rates.
2:- International diversification
3:- Economic growth prospects
4:- Exchange rate fluctuation

4. Segments of IFM
1:- Foreign exchange market
2:- International bonds market
3:- International Equity market
4:- International Money market
5:- International credit market

5. Foreign Exchange Market
1. Foreign exchange market is the market for the purchase and
sale of foreign currencies.
2. It is an important segment of the IFM.
3. Borrowing or investing internationally requires the use of
foreign exchange market for conversion of currencies.
4. The foreign exchange market facilitates international trade
and international transaction.

6. Foreign Exchange Market
1. The foreign exchange market is the world’s largest financial
market.
2. The foreign exchange market is an over the counter market.
3. That mean there is no physical location where trader get
together to exchange currenScies.

7. Different rates used in foreign exchange market
• Cross Rate
• Spot Rate
• Forward Rate
• Forward premium
• Forward Discount
• Bid price
• Ask price

8. Participants in foreign exchange market
include
• Importers
• Exporters
• Portfolio managers
• Commercial banks
• Brokers
• Speculation
• Government
• Hedger

9. International Bond Market
 It is the segment of international financial market where
international bonds are brought and sold.Companies may rise
long term funds in foreign currencies through issue of
international bonds.
 Foreign and Euro bonds are the two types of international
bonds. s

10. Foreign bonds Euro bonds
 Foreign bonds are underwritten
by the underwriters of the country
where the are issued.
 Maturity based on the need of
investors of a particular country.
 Foreign bonds are subjected to
government regulations in the
country where they are issued
 Underwritten by internationally.
 Offered simultaneously to
investor in a number of countries.
 Issued outsides the jurisdiction of
any single country.
 They are not registered a
regulatory agency.
 Make coupon payment annually

11. International Money Market
 Money market is the market for transfer of short-term-funds.
 In international money market , transaction takes please in a
variety of different currencies.
 The European money market is an important part of the
international money market.

12. Internatio1nal Credit Market
 MNCs can obtain short-term funds foreign currencies from the
international money markets , and can obtain long term funds
in foreign currencies from the international bonds markets.
 The segment of the international financial market where
medium term funds are exchanged between the suppliers and
borrower s of such funds is sometimes referred to as
international credit market.