Financial Markets

The financial markets

The financial markets consist of:

Money markets – maximum duration of 12 months

Capital markets – Minimum duration 12 months and maximum duration could be even 20-25 years

Foreign exchange markets

Insurance market

Banking and

Mutual funds

The money markets and capital markets in turn do have “Primary market” and “Secondary market”. Primary market means issue of financial instruments by companies and others that want to raise financial resources from the market. Secondary market refers to that market wherein the financial instruments issued in the Primary market change hands from one investor to another for financial consideration.