FIN645

chapter 1: Overview financial

markets and institutions

Mind map by Natasha Azzarienna binti Badri

(2020966579) (BA2425D)
DEFINITION differences
Market Primary Market secondary market
A market is a place When new issues of a security are sold
where people exchange The market for previously issued
products and services. to the public for the first time. securities.
This is the only time the issuing company Stocks traded on the secondary
Financial Market
receives money in exchange for the
A financial market is a market do not generate any
securities.
place where individuals revenue for the issuing company.
and businesses intending Ex: Farm Fresh's initial public offering
to borrow money gather (IPO) would entail the sale of 743.18 Ex: On the open market, an investor
with people who have purchases existing Mr. DIY stock.
money to lend. million shares, or 40 per cent of its
enlarged issued share capital, according This is a secondary market
INITIAL PUBLIC to its draft IPO prospectus posted on transaction because no new shares
OFFERING (IPO)
the Securities Commission website. are generated.
An initial public offering
(IPO) is when a
corporation issues stock
for the first time in the
public market.
Top 10 richest differences
companies in
money Market capital market
Malaysia
It is the part of financial market where Capital market is part of the financial
lending and borrowing takes place for market where lending and borrowing takes
Malayan Banking Berhad short-term up to one year place for the medium-term and long-term
Public Bank Berhad Money markets generally deal in Capital market deals in equity shares,
Tenaga Nasional Berhad promissory notes, bills of exchange, debentures, bonds, preferred shares, etc.
IHH Healthcare Berhad commercial paper, T bills, call money, etc It involves stockbrokers, mutual funds,
The money market contains financial underwriters, individual investors, commercial
CIMB Group Holdings Berhad
banks, the central bank, commercial banks, banks, stock exchange, Insurance Companies
Hong Leong Bank Berhad financial companies, chit funds, etc. Due to less liquid nature and long maturity,
Axiata Group Berhad Since the market is liquid and the maturity the risk is comparatively high
Maxis Berhad is less than one year, Risk involved is low
Digi.com Berhad
Top Glove Corporation Bhd