Financial markets

1. Financial markets are centers or market place where buyers and sellers
interact to buy and sell financial asset
Like bonds,shares,foreign exchange commodities

3. ON THE BASIS OF MATURITY OF SECURITY
1
•MONEY
MARKET
2
•CAPITAL
MARKET

4. Money market is a market where short term
funds having a maturity period
Of less than one year are offered in the
market.It is highly organised money
Market and dominated by banks.

5. FUNCTIONS OF MONEY MARKET

6. FEATURES OF MONEY MARKET

8. MONEY MARKET ADVANTAGES

9. MONEY MARKET DISADANTAGES

10. Capital market is a market deals in long term
securities which usally
Have a maturity of more than one year. The
securities traded in capital
Market will have long and indefinite maturity

13. IMPORTANT FUNTIONS OF CAPITAL MARKET
• Mbilization of savings
• Capital formation
• Provision of investment Avenue
• Speed up ecnomic growth and
development
• Proper regulation of funds
• Continuous availability of funds
• Service provision

15. ADVANTAGES AND DISADVANTAGES OF CAPITAL MARKET
ADVANTAGES
• Provides long term funds to company
• Rate of interest is generally lower
• Interest is tax deductable
• No dilution of control
• Provide flexibility in capital structure
DISADVANTAGES
• Fixed interest charges
• Charge on the asset of the company
• Cost of raising finance is high
• No voting rights

16. ON THE BASIS OF SEASONING OF CLAIM
1.PRIMARY MARKET
2.SECONDARY MARKET

17. It deals with the securities which
are issued for the first time.
It is a market where companies
sell new shares to intial buyers.

23. SECONDARY
MARKET
AUCTION
MARKET
DEALER
MARKET

29. ON THE BASIS OF TIMING AND DELIVERY
CASH OR SPOT MARKET
FORWARD OR
FUTURE MARKET

31. It is a market where financial instruments are
traded for immediate
Delivery.
It also known as physical market , where the
delivery of financial instruments
Or commodities takes place on the day of
trade

34. It is market where buyer and sellers enter into a
contract . The seller sells the share
On present day,with the condition that the shares will
be delivered on specific future date at a predetermined
price.

36. ON THE BASIS OF ORGANIZATIONAL STRUCTURE
1.EXCHANGE MARKET
It is market where , buyers and sellers
of securities or their agents or brokers
carry trade of securities

40. OVER THE COUNTER MARKET

41. CONCLUSION
Financial markets are the backbone of a country’s economy and essential
for the growth and development of the nation.
It plays a crucial role in the allocation of limited resources available in the
economy of any country by acting as an intermediary between savers and
the investors.
These market involves a massive amount of risk . But when done wisely
and strategically ,they are highly beneficial for individuals,business
firms,financial institution,brokers and various other parties involved in it.
PPT MADE BY
MANJUNATH NS