This document discusses financial markets and consists of 6 modules. It defines financial markets as any marketplace where trading of securities occurs, including stock, money and bond markets. Module 1 discusses risk in financial markets, covering interest rate, equity, currency and commodity risk. Module 2 covers behavioral finance and how emotions can influence financial decisions. Module 3 defines financial instruments as contracts that can be created, traded and settled, including cash, stocks and loans. Module 4 lists the key components of financial markets as the debt market, equity market, foreign exchange market, mortgage market and derivatives market. Module 5 discusses investment as dedicating assets to gain value over time through sacrifice of resources. Module 6 covers non-profit organizations and critics of finance, including dem

1. FINANCIAL
MARKETS
▶NAME:VIDDHI AGGARWAL
▶CLASS :MBA-IIB
▶ROLL NO.:2102349
STUDENT ID: 21552113
SUBMITTED TO
MS. POOJA BAHUGUNA

2. WHAT IS FINANCIAL MARKET ?
▶ Financial maíkets íefeí bíoadly to
any maíketplace wheíe the
tíading of secuíities occuís.
▶ ľheíe aíe many kinds of financial
maíkets, including (but not limited to)
foíex, money, stock, and bond
maíkets.
▶ ľhese maíkets may include assets oí
secuíities that aíe eitheí listed on
íegulated exchanges oí else tíade
oveí-the-counteí

4. FINANCIAL
MARKETS
MODULE
RISK IN
FINANCIAL
MARKET
BASIC OF
BEHAVIOURAL
FINANCE
INSTRUMENTOF
FINANCIAL
MARKET
COMPONENTS
OF FINANCIAL
MARKET
ROLE OF
INVESTMENT
NON-PROFIT
ORGANISATION
AND CRITIES
FINANCE

5. MODULE:1
RISK I
N FINANCIAL MARKET
The market risks include interest rate risk,
equity risk, currency risk, and commodity
risk. Interest rate risk covers the volatility
that may accompany interest rate
fluctuations due to fundamental factors,
such as central bank announcements
related to changes in monetary policy.
▶ OPTIMAL RISK-RETURN
PORTFOLIOS.
▶ EFFICIENTFRONTIER IN
PORTFOLIO
MANAGEMENT
▶ INSURANCE
▶ CALCULAT
ING THE
OPTIMALPORTFOLIO

6. MODULE: 2
BASI
C OF
BEHAVIOURAL
FINANCE
Behavioral finance asserts that rather
than being rational and calculating,
people often make financial decisions
based on emotions and cognitive
biases. For instance, investors often
hold losing positions rather than feel
the pain associated with taking a loss.
FORECASTING
PRICING
DEBT
INFLATION

7. MODULE:3
INSTRUMENTOF
FINANCIALMARKET
Financial instruments are
monetary contracts between parties.
They can be created, traded,
modified and settled.
▶ CASH
▶ T
IME DEPOSIT
▶ FUTURESCONTRACT
▶ LOAN
▶ STOCK
▶ REAL ESTATE

8. MODULE: 4
COMPONENTS OF FINANCIAL
MARKET
FINANCIAL MARKETS COMPRISE FIVE KEY
COMPONENTS: THE DEBT MARKET, THE
EQUITY MARKET, THE FOREIGN-EXCHANGE
MARKET, THE MORTGAGE MARKET
, AND
THE DERIVATIVE MARKET.
▶ ROLE OF REGULATORY BODIES
▶ INVESTMENT BANKS
▶ COMMODITIES MARKET

9. MODULE:5
ROLE OF
INVESTMENT
INVESTMENT IS THE DEDICATION
OF AN ASSET TO ATTAIN AN
INCREASE IN VALUE OVER A
PERIOD OF TIME. INVESTMENT
REQUIRES A SACRIFICE OF SOME
PRESENT ASSET, SUCH AS TIME,
MONEY, OR EFFORT. IN FINANCE,
THE PURPOSE OF INVESTING IS
TO GENERATE A RETURN FROM
THE INVESTEDASSET

10. MODULE: 6
NON-PROFITORGANISATION AND
CRITICS FINANCE
T
HE DEMOCRAT
IZ
AT
ION OF FINANCE IS T
HE
RESUL
TOF A GLOBAL DEMAND T
O
COMPLET
ELY RETHINK T
HE FINANCIAL SYSTEM
T
O MAKEITMORE ACCESSIBLE T
O EVERYONE,
REGARDLESSOF CONSUMERS' ST
ANDARDSOF
LIVING, INCOME OR GEOGRAPHIC LOCAT
ION.
▶ CRITICS OF MODERN FINANCE
▶ DEMOCRATIZATION OF FINANCE
▶ FINANCE AND POPULATION GROWTH
▶ ECONOMIC WAR