The primary market allows corporations to issue new shares to raise capital for expanding operations or acquiring other companies. Companies can issue different types of securities like rights issues, bonus issues, and Indian Depository Receipts. The secondary market is where previously issued securities like shares, bonds, bills are traded among investors. Trading can occur on a stock exchange or over-the-counter market. The money market acts as an essential part of the financial system for short-term debt trading of less than 1 year. It deals with short-term instruments like treasury bills, commercial paper, and certificates of deposit.

2. Primary Market: Meaning
A primary market is a marketplace where corporations
imbibe a fresh issue of shares for being contributed by the
public for soliciting capital to meet their necessary long-term
funds like extending the current trade or buying a unique
entity.
Multiple types of issues made by the establishment are –
Offer for sale, public issue, issue of Indian Depository
Receipt (IDR), bonus Issue, right issue, etc.

3. Secondary Market: Meaning
A secondary market is a prototype of the capital market where
debentures, current shares, options, bonds, treasury bills,
commercial papers, etc., of the enterprises are patronised amongst
the investors.
The secondary market can be an auction business where the
business of bonds is functioned through a dealer market or the
stock exchange, usually called over the counter.

6. Money Market
Definition: Money Market acts as an essential part of economic
development. It is concerned with that portion of the financial
system where trading of the short-term fund is done for a period of
less than 1 year.
It is a product of the capital market, which is treated as a channel of
short-term debt capital. Although it is undoubtedly distant from the
capital market, money market deals with short-term call and notice
deposit, promissory notes, government papers, short-period bills, etc.

21. BSE
BSE (Bombay Stock Exchange):
BSE is the oldest and the fastest stock exchange.
It was Asia’s first stock exchange.
BSE is an ideal choice for beginners or investors who are looking for steady,
low-risk investments.

22. Functions of BSE
The following are the primary functions of the
Bombay Stock Exchange –
Price
Determination
Contribution
to the
Economy
Facilitates
Liquidity
Transactional
Safety

26. FOREX
The foreign exchange market is the world’s largest
financial market that decides the exchange rate of
currencies.
Also known as the forex or currency market, it is
where different types of currencies are traded.
The value of the base currency is determined by
comparing it to the other currency through its
purchase and sales.

28. Participants in Forex Market
#1 – International
Companies
#2 – Traders
#3 – Central Banks

29. Spot Transactions
This method of transaction is the fastest way
to exchange currencies. Spot transaction
refers to the exchange or settlement of the
currencies by the buyer and seller within two
days of the deal without a signed contract.

30. Forward Transactions
Forward transactions are future transactions
when the buyer and seller enter into an
agreement of purchase and sale of currency
after 90 days. The agreement is framed on
the basis of a fixed exchange rate for a
definite date in the future.

31. Future Transaction
Future transactions also deal with contracts in the same manner as forward
transactions. However, in the case of future transactions, standardized
contracts in terms of features, date, and size should be followed.

32. Swap Transactions
Simultaneous lending and borrowing of
two different currencies between two
investors are called swap transactions.
One investor borrows a currency and
repays it in the form of a second currency
to the second investor.

33. Option Transactions
The exchange of currency from
one denomination to another at
an agreed rate on a specific date
is an option for an investor.

41. • What are derivatives?
• It means financial contracts that earn their value from a group of
assets or underlying assets are called derivatives
• How many types of derivatives are there in India?
• The four different types of derivatives in India are as follows:
• 1) Forward Contracts
• 2) Future Contracts
• 3) Options Contracts
• 4) Swap Contracts