Types of Financial Market

Based on market major categories

• Primary market: Primary marketplace is a marketplace for new issues or new economic claims. Hence it’s additionally known as new trouble marketplace. The primary market deals with those securities which are issued to the general public for the primary time.
• Secondary marketplace: A marketplace for secondary sale of securities. In different words, securities that have already handed via the new problem market are traded on this market. Generally, such securities are quoted within the stock change and it affords a continuous and normal market for buying and selling of securities.

Simply positioned, primary market is the market where the newly started agency issued stocks to the public for the primary time through IPO (initial public offering). Secondary marketplace is the market in which the second one hand securities are sold (security Commodity Markets).

Based on security types

1. Money market: Money marketplace is a market for dealing with the financial property and securities that have a maturity period of as much as 365 days. In different words, it’s a market for in basic terms short-time period finances.
2. Capital marketplace: A capital market is a marketplace for economic assets that have a long or indefinite maturity. Generally, it deals with lengthy-time period securities which have a maturity length of above three hundred and sixty five days. The capital market can be further divided into (a) industrial securities marketplace (b) Govt. Securities marketplace and (c) long-time period loans marketplace.
3. Equity markets: A marketplace wherein possession of securities are issued and subscribed is known as fairness marketplace. An example of a secondary equity marketplace for shares is the National Stock Exchange (NSE) stock trade.
4. Debt marketplace: The marketplace in which budget are borrowed and lent is called debt marketplace. Arrangements are made in this type of manner that the borrowers comply with pay the lender the authentic amount of the mortgage plus some exact quantity of interest.
5. Derivative markets: A marketplace where economic instruments are derived and traded based totally on an underlying asset consisting of commodities or shares.
6. Financial carrier marketplace: A market that incorporates contributors along with industrial banks that provide diverse financial services like ATM. Credit cards. Credit score, stock broker and so forth. Is referred to as financial provider marketplace. Individuals and corporations use financial services markets, to buy offerings that decorate the workings of debt and fairness markets.
7. Depository markets: A depository marketplace includes depository establishments (which includes banks) that receive deposits from people and corporations and uses these finances to take part inside the debt market, by way of giving loans or purchasing other debt instruments including treasury bills.
8. Non-depository marketplace: Non-depository market perform diverse functions in monetary markets starting from monetary intermediary to selling, insurance and many others. The numerous constituencies in non-depositary markets are mutual finances, insurance organizations, pension funds, brokerage corporations and so on.