Financial Market is a place where funds are raised for long-term or short-term, for the purpose of carrying on an operation, diversification, expansion. It facilitates the cash flow and transfer of resource from the people who have money in surplus to the people who require it carry on certain activities. For Example, Mr. A is who is having surplus money and he has no idea which business to start or where to maximize his investment so his best friend Mr.B introduce him to Mr.S who is a financial advisor suggest him to invest money in the stock market where you can buy or sell your securities of N number of companies with N number of money holding fractional amount of ownership and rights in different companies you wish to be part of .
One more friend of Mr.B who is having a start-up business and require money for his operations but he is having no idea how to avail such an amount, Mr. B introduced Mr.C to a financial adviser Mr. S. where he told him various aspects of financial markets and mechanism how he can leverage funds through various best possible options available in the market by introducing securities
The Financial Market consists of
1)Investor ( the person having surplus cash /Idle cash)
2) Borrow( people who seek money for operations or for various activities)
3)intermediaries ( helps in buying and selling of securities)
4) Regulators ( protects the interest of the investors and helps in the development of markets)
The market is subdivided into two-part Money Market and Capital Market.
1) Money Market is the place where funds are raised for the period of 1 year.
2) The capital market is the place where money is raised for the period of more the one year,its place where securities buy and selling operations take place through Exchanges.
One more friend of Mr.B who is having a start-up business and require money for his operations but he is having no idea how to avail such an amount, Mr. B introduced Mr.C to a financial adviser Mr. S. where he told him various aspects of financial markets and mechanism how he can leverage funds through various best possible options available in the market by introducing securities
The Financial Market consists of
1)Investor ( the person having surplus cash /Idle cash)
2) Borrow( people who seek money for operations or for various activities)
3)intermediaries ( helps in buying and selling of securities)
4) Regulators ( protects the interest of the investors and helps in the development of markets)
The market is subdivided into two-part Money Market and Capital Market.
1) Money Market is the place where funds are raised for the period of 1 year.
2) The capital market is the place where money is raised for the period of more the one year,its place where securities buy and selling operations take place through Exchanges.
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