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FINANCIAL

MARKET
Understanding the backbone of
economies

By: marian sharma


Bba 2 2307030000338
INTRODUCTION

FINANCIAL MARKET IS A PLACE FOR


TRADE OF FINANCIAL SECURITIES,
FINANCIAL INSTRUMENTS AND
COMMODITIES
FUNCTIONS OF FINANCIAL MARKETS

● CAPITAL FORMATION
● PRICE DETERMINATION
● LIQUIDITY PROVISION
● RISK MANAGEMENT
COMPONENTS OF FINANCIAL MARKET

STOCK MARKET: TRADING OF COMPANY STOCKS, REPRESENTING


OWNERSHIP

BOND MARKET: TRADING OF DEBT SECURITIES ISSUED BY


GOVERNMENT, CORPORATIONS

FOREIGN EXCHANGE MARKET: TRADING OF CURRENCIES,


FACILITATING INTERNATIONAL TRADE

COMMODITY MARKET: TRADING OF PHYSICAL GOODS


SEGREGATION OF FINANCIAL MARKETS

FINANCIAL MARKETS

MONEY MARKET
Lorem Ipsum CAPITAL
Lorem IpsumMARKET

PRIMARY
Lorem Ipsum SECONDARY
Lorem Ipsum
MONEY MARKET

● A MARKET FOR DEALING IN MONETARY ASSETS OF SHORT


TERM NATURE
● ENABLES RAISING UP OF SHORT TERM FUNDS FOR
MEETING TEMPORARY SHORTAGE OF FUNDS AND
TEMPORARY DEPLOYMENT OF EXCESS FUNDS
● MAJOR PARTICIPANTS ARE: RBI AND COMMERCIAL BANKS
CAPITAL MARKET

● A MARKET FOR FINANCIAL ASSETS WHICH HAVE A


LONG OR INDEFINITE MATURITY
● FOCUSES ON FINANCING OF FIXED INVESTMENTS
● MAJOR PARTICIPANTS ARE: INDIVIDUALS, FOREIGN
INVESTORS, MUTUAL FUNDS ETC
REGULATION OF FINANCIAL MARKETS

FINANCIAL REGULATIONS ARE LAWS AND RULES THAT GOVERN


FINANCIAL INSTITUTIONS WORKING IN THE FINANCIAL
MARKET

PURPOSE: ENSURE MARKET INTEGRITY, PROTECT INVESTORS,


MAINTAIN SYSTEMIC STABILITY

REGULATORY BODY: SEBI (SECURITIES EXCHANGE BOARD OF


INDIA)
CONCLUSION

FINANCIAL MARKET IS A PLACE FOR EXCHANGE OF DIFFERENT


COMMODITIES, FINANCIAL SECURITIES AND FINANCIAL
INSTRUMENTS

IT PLAYS A VITAL ROLE IN DRIVING ECONOMIC GROWTH

IT IS A DYNAMIC ECOSYSTEM THAT CONTINUOUSLY EVOLVE AND


ADAPT TO CHANGING ECONOMIC CONDITIONS

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