Scribd Logo
Upload

Welcome to Scribd!

  • Markets

    Uploaded by

    Evelyne Wangui
    3 views10 pages
    The document discusses different types of capital and financial markets. It defines a financial market as a marketplace for securities that facilitates channeling financial assets to productive sectors. The primary ways capital is transferred include through financial intermediaries, investment banks, and direct transfers between businesses and savers. Financial markets can be money markets, stock markets, bonds markets, or foreign exchange markets. They trade financial assets, while physical asset markets trade tangible goods. Spot markets facilitate immediate trades, while futures markets agree to trades at a future date. Money markets handle short-term debt, while capital markets trade long-term securities. Primary markets issue new securities, and secondary markets trade existing securities between investors. Public markets use standardized contracts, whereas private markets facilitate transactions

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses different types of capital and financial markets. It defines a financial market as a marketplace for securities that facilitates channeling financial assets to productive sectors. The primary ways capital is transferred include through financial intermediaries, investment banks, and direct transfers between businesses and savers. Financial markets can be money markets, stock markets, bonds markets, or foreign exchange markets. They trade financial assets, while physical asset markets trade tangible goods. Spot markets facilitate immediate trades, while futures markets agree to trades at a future date. Money markets handle short-term debt, while capital markets trade long-term securities. Primary markets issue new securities, and secondary markets trade existing securities between investors. Public markets use standardized contracts, whereas private markets facilitate transactions

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views10 pages

    Markets

    Uploaded by

    Evelyne Wangui
    The document discusses different types of capital and financial markets. It defines a financial market as a marketplace for securities that facilitates channeling financial assets to productive sectors. The primary ways capital is transferred include through financial intermediaries, investment banks, and direct transfers between businesses and savers. Financial markets can be money markets, stock markets, bonds markets, or foreign exchange markets. They trade financial assets, while physical asset markets trade tangible goods. Spot markets facilitate immediate trades, while futures markets agree to trades at a future date. Money markets handle short-term debt, while capital markets trade long-term securities. Primary markets issue new securities, and secondary markets trade existing securities between investors. Public markets use standardized contracts, whereas private markets facilitate transactions

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    Markets

    CAPITAL TRANSFERS
    Capital transfer- transfer of ownership of an asset
    PRIMARY WAYS OF
    CAPITAL TRANSFER
     Financial intermediary- funds from savers, gives its own securities
    in exchange (Donald & Miraz, 2020)
     Investment bank- business sells to the bank, which sells to savers
     The direct transfer of securities and money- business sells
    securities to savers directly
    FINANCIAL MARKET
    Definition: Marketplace for securities
    Facilitate channeling of financial assets to productive sectors

    Examples
     Stock markets
     Bonds markets
     Money markets
     Forex markets
    PHYSICAL ASSET MARKETS VERSUS
    FINANCIAL ASSET MARKETS

    Financial assets markets-


    Physical assets markets
    claims on assets in the
    –tangible or real assets
    form of financial securities
    SPOT MARKETS VERSUS FUTURES
    MARKET

     Spot markets- on-spot  Futures market- agreement to


    deliver (Dobeson & Kohl, trade at a future date
    2020)

    FINANCIAL
    SECURITIES

    DELIVER
    BUY SOLD CASH MARKET FUTURE
    IMMEDIATELY
    MONEY MARKETS VERSUS CAPITAL
    MARKETS

     Money markets- debt securities with maturities of less than a year


     Capital markets- securities with long-term maturities
    Primary asset markets versus
    secondary markets
     Primary assets markets- capital raised by issuing new securities
    (Dobeson & Kohl, 2020)
     Secondary assets markets- the issued securities are traded among
    investors.

    Primary Secondary
    Investor Investor
    Market Market

    Wants to sell Want vehicle at a


    Company their vehicle discount
    PUBLIC MARKETS VERSUS PRIVATE
    MARKETS

     Public markets- organized trading with standardized


    contracts
     Private markets- a transaction between two parties
    REFERENCES
     Dobeson, A., & Kohl, S. (2020). Why durability matters?
    Towards a Comparative Economic Sociology of Market
    Organization: European Journal of Sociology. Archives
    Européennes De Sociologie, 61(1), 33-64. https://
    doi.org/10.1017/S0003975620000028
     Donald, D. C., & Miraz, M. H. (2020). MULTILATERAL
    TRANSPARENCY FOR SECURITIES MARKETS
    THROUGH DLT. Fordham Journal of Corporate & Financial
    Law, 25(1), 97-153.
    https://libauth.purdueglobal.edu/login?url=https://
    www.proquest.com/scholarly-journals/multilateral-transparency
    -securities-markets/docview/2348386215/se-2

    You might also like