BUSINESS FINANCE

Types Of Markets
GROUP 2
1. Physical Assset Markets
(also called tangible or real asset markets)

-are for products such as

wheat autos, real state,
computer and machinery.
 2. Financial asset markets
-deals with stocks, bonds, notes and mortgage. Financial
markets also deal with derivative securities whose values are
derived from changes in the process of the other assets.
-A share of meralco stock is a pure financial asset, while an
option to buy meralco shares is a derivative security whose value
depends on the price of stocks. Bonds backed by subprime
mortgages are another type of derivative, as the values of these
bonds are derived from the values of the underlying mortgages.
3. Spot markets
- are market in which assets are
bought or sold for "on-the-spot"
delivery.
4. Future markets
- are markets in which participants
agree today to buy or sell an asset
at some future date.
 5. Money markets

- are financial markets in which funds

are borrowed or loaned for short
periods ( less than one year ).
 6. Capital markets
- are financial markets for stocks and for
intermediate or long term debt ( one
year or longer ).
7. Primary markets
- are the markets in which
corporations raise capital by
issuing new securities.
 8. Secondary markets
- are the markets in which securities
and other financial assets are traded
among investors after they have
been issued by corporations.
9. Private markets
- are markets in which
transactions are worked out
directly between two parties.
 10. Public markets
- are markets in which standardized
contracts are traded on organized
exchanges.
Thank You!