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Financial MarketsBy:- Tayyaub khalid

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Financial Markets

Markets in which funds are transferred

from people who have surplus funds to

who have a shortage of funds.

Money Market Capital Market

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Money Market (Short run market)

Money markets is a component of financial market involved

in short-term borrowing and lending with original maturities

of one year or shorter time frames. ...

Involved in Short term loans , debts securities

Instrument use in the Money Market:

Treasury Bills

Banks acceptances (Bill of exchange)

Call loans etc

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Capital Market

The capital market deals with the medium and long term

loans and securities. Capital market is related with:

Debts instruments (bonds , government securities etc.)

Equity instruments (shares)

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Debts instruments

A paper or electronic obligation that enables the issuing

party to raise funds by promising to repay a lender in

accordance with terms of a contract. Types of debt

instruments includeN

otes, bonds, certificates,mortgages, leases or other agreements between a

lender and a borrower.

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Equities instruments

Document that serves as a legally

enforceable evidence of the right of ownership in

a firm, such as a share certificate (stock certificate)

Primary market Secondary market

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