Meaning and Features of Financial Market

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What is meant by financial market ? Give its features. What are the kinds of financial market?

Meaning of Financial Market

Financial market is an institution which makes easier dealing in securities. Here financial assets are dealt. It has no specific place. It is concerned with all those places where dealing is carried on financial securities.

Features of Financial Market

Following are the Features of financial market:

1. It is concerned with all those places where financial securities and instruments are dealt.
2. These are of two types i.e. money market and capital market.
3. Money market and capital market can be sub-divided.
4. These markets establish co-ordination between demand and supply of loanable funds and securities.
5. Financial market increases liquidity and security of financial securities.

Kinds of Financial Market

Financial market can be divided as under :

(A) Money market

1. Organised money market
2. Unorganised money market
3. Sub-money market

1. Call money market
2. Commercial bills market

1. Discount market
2. Acceptance market.

4. Treasury bills market

(B) Capital market

1. Organised capital market
2. Unorganised capital market
3. Sub-capital market

1. Government security market or gilt-edged market
2. Industrial security market

1. Primary or new issue market
2. Secondary or old issue market.

Related Link

• Describe the various types of money
• Dynamic Functions of Money
• Evils or Demerits of Money
• Importance and significance of money in Modern Economy
• Approaches regarding Definitions of Money and its Function
• Money: Meaning, Definitions and features of Money

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