REACTION PAPER

THE ROLE FINANCIAL MARKET AND OTHER SECTOR OF FINANCIAL SYSTEM

PRESENTED BY MS.JOAN MAGDAET

NAME: Annedith A. De Guia

SECTION: G12-ABM01

Financial Market in the Financial System you need an over view of Financial System it is a set of
institution that exist on firm, regional and global levels which permit the exchange of funds. It is
composed the User of funds, Suppliers of funds, Private Placement, Financial Institution, Financial
Instrument and Financial market. User of funds when we say user of funds this is the one who consumed
the funds. , Suppliers of funds for those individual who has excess cash, financial resources. Private
Placement which is the agreement. Financial Instrument this is the tools use in the flow of fund such as
assets/cash, liability, Equity. Financial Market it is organized forums in which the suppliers and user of
various types of funds can make transaction directly. Classification of financial market as to term or
maturity basically talks about Money Market and Capital Market. When we say Money market it cover
markets for short-term debt instrument. When we say short-term it is involved investment or ensuring
debt securities good purchase for 12 months below. However the Capital market this market for long-
term securities for more than 1 year. For long-term securities or instrument. A side from as to maturity
or term we have as to type of issue have Primary market and Secondary market. When we say Primary
market which means first or consists of issuance of new security. Secondary market are market for
currently outstanding securities, meaning to say there’s is a previous of securities already.