The document discusses international financial markets. It defines international finance markets as mechanisms that facilitate the transfer of funds across national boundaries. The key segments of international financial markets discussed are foreign exchange markets, international bond markets, and international equity markets. Foreign exchange markets allow for the conversion of currencies needed for international trade and transactions. International bond and equity markets allow companies to raise long-term funds in foreign currencies through issues of bonds and stock in other countries.

1. D E P A R T M E N T O F F I N A N C E A N D C R E D I T
R E P O R T O N :
I N T E R N AT I O N A L M A R K E T F I N A N C E .
E X E C U T E D BY : N E V O S A M U E L . P
G R O U P : B F - 2 6 B

2. CONTENT:
1. Introduction
o Definition of finance market.
o Foreign exchange market.
o Motives for internationalization of financial transaction
o Sources of international fund
o Segment of international financial market
2. International Bond market.
o Foreign bonds
o Euro bonds
o International equity market.

3. INTRODUCTION.
The international finance market is the place where financial wealth is traded
between individual and between countries. It can been seen as a wide of rules
and institutions where assets are traded between agents in surplus and agent
in deficit and where institution lay down their rules.
The financial market comprises the markets strictu sensu (stock market,
bond market, currency market, derivatives market, commodity market and
money market), the institutions which work in them with different aims and
functions (Central Bank, Ministry of Economy and Finance, Monte Titoli, Borsa
Italian and CONSOB), as well as direct/indirect policies orientated to making
the market the place (not necessarily a physical place and not necessarily ruled
but regulated) where the exchange between surplus and deficit units is carried
out as efficiently as possible.
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4. DEFINITION OF FINANCE MARKET
• Finance market simply means a mechanism that facilitates the transfer
of funds from lenders (surplus units) to borrowers (deficit units) or a
market in which people trade financial securities, commodities and low
transaction cost and the prices that reflect supply and demand.
Securities includes stock and bond while commodities precious metals
and agricultural products.
The institutions and instruments are integral part of financial market
and when funds flow across national boundaries and the transfer is
between parties residing in different countries, there comes into existence
the international financial market.

5. FOREIGN EXCHANGE MARKET
Financial market is defined as a market in which people trade financial securities,
commodities and low transaction cost and the prices that reflect supply and demand. It’s
an important segment of the international market.
Borrowing or investing internationally requires the use of foreign exchange market for
conversion of currencies.
o Foreign exchange market facilitates international trade and international transaction.
o It is the world largest financial market
o The foreign exchange market is an over the counter market
o That means there is no physical location where traders get together to exchange
currencies.

6. MOTIVE FOR INTERNATIONALIZATION OF FINANCIAL
TRANSACTION.
Below are the motive of internationalization of financial transaction.
• Difference in interest rate
• International diversification
• Economic growth prospect
• Exchange rate fluctuation

7. SOURCES OF INTERNATIONAL FUND.
oThe flow of funds from providers to seekers of international funds takes place
through institutions or agencies and through difference financial instrument.
oThe institutions or agencies that serve as a sources of international fund are:
Multilateral development banks or agencies.
Government and governmental agencies.
International banks.
Securities banks.

8. SEGMENT OF INTERNATIONAL FINANCIAL MARKET
International financial market facilities the transfer of funds globally. The funds
so transferred may be ownership funds or debt funds. The funds may
transferred for different maturity periods such as short term, medium term and
long term.
Segment of international financial market are:
o Foreign exchange market
o International bond market
oInternational equity market
o International money market
o International credit market.

9. INTERNATIONAL BOND
• Its is that segment of international financial market where international bonds
are brought and sold .Companies may raise long –term funds in foreign
currencies through issue of international bonds. Foreign bonds and Euro
bonds are the two of international bonds .International bond markets also
includes ;
Straight bonds
Global bonds
Floating rate notes
Convertible bonds
Cocktail bonds
Callable and puttable bonds
Sinking fund bonds

10. INTERNATIONAL EQUITY MARKET
Equity capital for a company is raised through the issue of shares.
These shares are traded in the stock exchange market of the country.
A multinational company would like often like to raise equity capital from different
countries by issuing shares in those countries.
The shares would also be listed trading in stock exchanges of these countries.
This may be done to raise foreign currency funds required for specific projects or for
enhancing the prestige of the company in the global market , or sometimes the domestic
market may not be large enough to absorb a large stock offering .