GROUP MEMBERS ANKIT PREMANI BHAKTI THAKKER JAINY SHAH NIYATI SHAH PALLAKH SAWHNEY ZISHAN SIDDIQUI 26 42 33 34 32 37

Financial market
Can trade in financial securities,commodities,other fungible items of low transaction cost and prices that reflect demand and supply. Where securities stocks and bonds Commodities precious metals and agriculture goods.

Export financing
Financing products laons , gaurantees, letter of credit ,insurance etc.

Financial markets
1. General markets - wh. Many commodities are traded specialised markets wh. Only 1 commodity is traded 2. Financial markets facilitate : The raising of capital The transfer of risk. Price discovery Its given to those who want from those who have. Borrower issues receipt lender pay back the capital. Securities freely bought o sold. Lender compensation interest/dividend

 Financial markets can be domestic or they can be international. Raising capital : 1. Without FM, borrowers -difficulty finding lenders themselves. 2. Intermediaries -banks, Investment Banks, and Boutique Investment Banks 3. Banks - deposits -those with money to save. 4. lend money -pool of deposited money - those who seek to borrow. 5. Banks - lend money in form of loans and mortgages

 The following illustration where financial markets fit in the relationship between lenders and borrowers : 1. Lenders those enough money - lend or to give someone money from own pocket - condition of getting back the principal amount or with some interest /charge, 2. Individuals & doubles A person lends money when he or she: puts money - savings acc at a bank; contributes to a pension plan; pays premiums - insurance company; invests in government bonds; Invests in company shares.

3. Companies
Companies - borrowers of capital. companies - surplus cash - not needed -short period of time, make money - cash surplus by lending it - short term markets called money markets 4. Borrowers Individuals - borrow money - bankers' loans - short term needs / longer term mortgages - finance a house purchase. Companies -borrow money -short term /long term cash flows. borrow to fund- modernization/ future business expansion. Governments - spending requirements > tax revenues difference-they need to borrow. Governments borrow on behalf - nationalized industries, municipalities, local authorities and other public sector bodies 5. Municipalities & local authorities may borrow in their own name as well as receiving funding from national governments.