Financial Markets

Frequently Asked Questions on Financial Markets

Some of the Frequently asked questions on financial markets

What are financial markets?
What are the types of financial markets?
What are the types of domestic financial markets ?

1. What are financial markets?

Financial markets consist of agents, brokers, institutions and intermediaries who transact in purchases and sales of securities.

The persons and institutions operating in the financial markets are linked by laws, contracts, communication networks that form externally visible financial market structure.

2. What are the types of financial markets?

There are two types of financial markets: Domestic financial markets and foreign exchange markets

3. What are the types of domestic financial markets:

Domestic financial markets can be:

a. Money Markets – this is where short term instruments such as treasury bills, commercial paper, certificate of deposit acceptances et c are traded.

b. Capital Markets – this is where financial instruments for raising capital are traded. It involves long term banking. Instruments like stocks and bonds are traded in this market.