Baldovizo, Berna Lei

Cadaña, Jomeilyn
Dacuycoy, Myrasol
Madayag, Eingel Joyce
Maquera, Jessa Mae
Tamayo, Nathaniel
• any marketplace where trading of securities
including equities, bonds, currencies, and
derivatives occur.

• provides a platform to the buyers and sellers, to

meet, for trading assets at a price determined by
the demand and supply forces.
• 1. Set prices for global trade, raise capital, and
transfer liquidity and risk.

• 2. To allocate savings efficiently to ultimate users.

and of
in
Financial Instruments Money Market Notice Money
Capital Market Financial Market Commercial Market
Mortgage Market Financial Regulator Derivative Market
Debt Market Financial Services Certificate and Deposits
Equity Market Financial System Financial Participants
Treasury Bills FX Markets
 FINANCIAL SYSTEM

Financial Financial Financial Financial Financial

Instruments Participants Market Regulator Services

Capital Market Mortgage Market Money Market Foreign-Exchange Derivative Market

Market

Debt Market Equity Market

Treasury Bills Certificate and Notice Money Commercial

Deposits Papers
1. Mobilisation of Savings and their Channelization into
more Productive Uses
2. Facilitates Price Discovery

3. Provides Liquidity to Financial Assets

4. Reduces the Cost of Transactions

 PHYSICAL MARKET FINANCIAL MARKET

- a set up where buyers - a type of

can physically meet the marketplace that
sellers and purchase provides an avenue
the desired for the sale and
merchandise from them purchase of assets
in exchange of money. such as bonds, stocks,
foreign exchange, and
derivatives.
 SPOT MARKET FUTURES MARKET

- also called the cash - Futures are financial

market or the physical contracts giving the
market, the spot buyer an obligation to
market is where purchase an asset
assets are sold for (and the seller an
cash and delivered obligation to sell an
immediately. asset) at a set price at
a future point in time.
 MONEY MARKET
- unorganized markets
where banks, financial
institutions, money
dealers and brokers trade
in financial instruments
for a short period of time.
- used for short-term
lending or
borrowing usually the
assets are held for one
year or less
CAPITAL MARKET
- organized market in
which both individuals and
business entities (such as
pension funds and
corporations) sell and
exchange debt and equity
securities.
- a type of financial
market where financial
products like stocks,
bonds, debentures are
traded for a long
duration of time.
 PRIMARY MARKET
- where the fresh issue of
securities are offered to the
public.
- part of the capital market
where new securities are
created are directly
purchased by the investors
from the issuer. And the
creation of new securities
facilitates growth within the
economy.
SECONDARY MARKET
- where issued securities
are traded between the
investors.
- a market where
securities are offered to
the general public after
being offered in the
primary market. These
securities are usually
listed on the Stock
Exchange.
 PRIVATE MARKET PUBLIC MARKET

- Resemble a free market or - Compromises a

bazaar supermarket securities

- Only professional investors - Individuals can invest in this

(or very wealthy market
individuals) can invest in
this market - Public companies are
heavily regulated
- Private companies are less
heavily regulated - Public companies must
report on performance
- Private companies do not
have to report on
performance
 DEBT MARKET
- where debt instruments are
traded. Debt instruments are
assets that require a fixed
payment to the holder,
usually with interest.
Examples of debt
instruments include bonds
(government or corporate)
and mortgages.
- it is the market where interest
rates are determined.
EQUITY MARKET
- (often referred to as the
stock market) is the market
for trading equity
instruments. Stocks are
securities that are a claim on
the earnings and assets of a
corporation (Mishkin 1998).
An example of an equity
instrument would be
common stock shares.
- it affects both investment
spending and consumer
spending decisions