{"id":153,"date":"2024-05-29T23:17:12","date_gmt":"2024-05-29T23:17:12","guid":{"rendered":"https:\/\/course.oeru.org\/miec103\/?page_id=153"},"modified":"2024-05-29T23:17:12","modified_gmt":"2024-05-29T23:17:12","slug":"financial-markets","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/miec103\/learning-pathways\/resource-markets\/financial-markets\/","title":{"rendered":"Financial markets"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\">\n<p>\n<\/p>\n<p>Financial markets are of many types, including general and specialized; capital and money; and primary and secondary. Read this section to learn about capital and financial markets, including topics like capital, technological change, and financial capital.\n<\/p>\n<p>\n<\/p>\n<div class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"objectives\" src=\"https:\/\/course.oeru.org\/miec103\/wp-content\/themes\/oeru_course\/idevices\/Icon_objectives.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Objectives<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<ul>\n<li> Describe different types of financial markets.\n<\/li>\n<\/ul>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<p>\n<\/p>\n<h3><span class=\"mw-headline\" id=\"Key_points\">Key points<\/span><\/h3>\n<ul>\n<li> A financial market is an aggregate of possible buyers and sellers of financial <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/security\">securities<\/a>, <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/commodities\">commodities<\/a>, and other <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/fungible\">fungible<\/a> items, as well as the transactions between them.\n<\/li>\n<li> The term &#8220;financial markets&#8221; is often used to refer solely to the markets that are used to raise <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/finance\">finance<\/a>: for long-term finance, <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/capital\">capital<\/a> markets are used; for short-term finance (maturity up to one year), <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/money-market\">money markets<\/a> are used.\n<\/li>\n<li> <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/stock\">Stock<\/a> markets and <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/bond\">bond<\/a> markets are two types of capital markets that provide <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/financing\">financing<\/a> through the issuing of shares of stock or the issuing of bonds, respectively. A key division within the capital markets is between the primary markets and <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/secondary-market\">secondary markets<\/a>.\n<\/li>\n<li> While capital markets and money markets constitute the narrower definition of financial markets, other markets, such as <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/derivative\">derivatives<\/a> and currency markets, are often included in the more general sense of the word.\n<\/li>\n<\/ul>\n<h3><span class=\"mw-headline\" id=\"Terms\">Terms<\/span><\/h3>\n<p><a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/definition\/capital\/\">capital<\/a><br \/>\nMoney and wealth; the means to acquire goods and services, especially in a non-barter system.\n<\/p>\n<p><a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/definition\/fungible\/\">fungible<\/a><br \/>\nAble to be substituted for something of equal value or utility; interchangeable, exchangeable, replaceable\n<\/p>\n<p><a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/definition\/derivative\/\">derivative<\/a><br \/>\nA financial instrument whose value depends on the valuation of an underlying asset; such as a warrant, an option, etc.\n<\/p>\n<p><a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/definition\/maturity\/\">maturity<\/a><br \/>\nDate when payment is due.\n<\/p>\n<h3><span class=\"mw-headline\" id=\"Types_of_financial_markets\">Types of financial markets<\/span><\/h3>\n<p>A financial market is an aggregate of possible buyers and sellers of financial securities, commodities, and other fungible items, as well as the transactions between them. Examples of financial markets include capital markets, derivative markets, money markets, and currency markets. There are many different ways to divide and classify financial markets: for example, into general markets and specialized markets, capital markets and money markets, and primary and secondary markets.\n<\/p>\n<p>Within the financial sector, the term &#8220;financial markets&#8221; is often used to refer solely to the markets that are used to raise finance:\n<\/p>\n<ul>\n<li> for long-term finance, capital markets are used\n<\/li>\n<li> for short-term finance (maturity up to one year), money markets are used.\n<\/li>\n<\/ul>\n<p>Stock markets and bond markets are two types of capital markets that provide financing through the issuing of shares of stock and the issuing of bonds, respectively. A key division within the capital markets is between the primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets, such as during <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/initial-public-offering\">initial public offerings<\/a>. Secondary markets are for the secondary trade of securities, providing a continuous and regular market for the buying and selling of securities.\n<\/p>\n<p>\n<\/p>\n<div class=\"center\">\n<div class=\"floatnone\"><a href=\"https:\/\/wikieducator.org\/File:NYSE_floor.jpg\" class=\"image\"><img loading=\"lazy\" decoding=\"async\" alt=\"NYSE floor.jpg\" src=\"\/\/wikieducator.org\/images\/1\/11\/NYSE_floor.jpg\" width=\"372\" height=\"210\" class=\"img-responsive\"><\/a><\/div>\n<\/div>\n<h3><span class=\"mw-headline\" id=\"The_New_York_Stock_Exchange\">The New York Stock Exchange<\/span><\/h3>\n<p>The New York Stock Exchange (NYSE) is an exchange enabling a financial market.\n<\/p>\n<p>While capital markets and money markets constitute the narrower definition of financial markets, other markets are often included in the more general sense of the word. The derivatives market is the financial market for derivatives&#8211; financial instruments like futures contracts or options&#8211; which are derived from other forms of <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/assets\">assets<\/a>. Currency markets, enabled by foreign <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/www.boundless.com\/finance\/definition\/exchange\">exchange<\/a> (or forex) markets enable currency conversion and determine the relative value of world currencies.\n<\/p>\n<p>\n<\/p>\n<p>Source: Boundless. \u201cTypes of Financial Markets.\u201d Boundless Finance. Boundless, 21 Jul. 2015. Retrieved 26 Oct. 2015 from <a rel=\"nofollow\" class=\"external free\" href=\"https:\/\/www.boundless.com\/finance\/textbooks\/boundless-finance-textbook\/introduction-to-the-field-and-goals-of-financial-management-1\/financial-markets-30\/types-of-financial-markets-172-3839\/\">https:\/\/www.boundless.com\/finance\/textbooks\/boundless-finance-textbook\/introduction-to-the-field-and-goals-of-financial-management-1\/financial-markets-30\/types-of-financial-markets-172-3839\/<\/a>\n<\/p>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.024 seconds\nReal time usage: 0.039 seconds\nPreprocessor visited node count: 127\/1000000\nPreprocessor generated node count: 843\/1000000\nPost\u2010expand include size: 1635\/2097152 bytes\nTemplate argument size: 216\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:177032-0!*!*!!*!2!* and timestamp 20240529164419 and revision id 1003601\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/miec103\/learning-pathways\/resource-markets\/the-labour-market\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/miec103\/learning-pathways\/resource-markets\/land-and-natural-resources\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Microeconomics_market_structures\/Financial_markets\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"5add5fc365774713bacf4b7647ef5e24\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Microeconomics_market_structures\/Financial_markets\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"5add5fc365774713bacf4b7647ef5e24\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Financial markets are of many types, including general and specialized; capital and money; and primary and secondary. Read this section to learn about capital and financial markets, including topics like capital, technological change, and financial capital. Key points A financial market is an aggregate of possible buyers and sellers of financial securities, commodities, and other [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":145,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-153","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/pages\/153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/comments?post=153"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/pages\/153\/revisions"}],"predecessor-version":[{"id":154,"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/pages\/153\/revisions\/154"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/pages\/145"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/miec103\/wp-json\/wp\/v2\/media?parent=153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}