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A financial market is a market for the creation a financial market where people
can buy and sell financial assets.
Money market
Money market is a market which trade in securities which has short maturity
periods. Ex. Treasury bills, certificate of deposits, fixed deposits, commercial
paper etc.
Certificate of deposits
A certificate deposit is an agreement between a bank and the depositor where
a predetermined money is deposited for a specific period of time.
Commercial paper
A commercial paper is an unsecured money market instrument issued in the
form of a promissory note.
Capital market
The capital market is a place where companies needing money issues stocks
and bonds which are then purchased and traded by individuals in search of
higher returns.
There are mainly two types market which is describe
1. Primary market
2. Secondary market
Bonds
A bond is a fixed income instrument that represents a loan by investor to the
borrower.
Pension market
Pension refers to the money that is paid on a monthly basis by the government
or a firm to someone who has stopped working or retired to old age or illness.