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Major Players in Financial Markets

This document discusses the major players in financial markets. It identifies three principal groups: 1) Borrowers, such as individuals and businesses who need money to finance purchases or investments; 2) Savers/Investors, like individuals and firms who have money to invest; 3) Financial Institutions, which are the intermediaries like banks that help connect borrowers and savers through financial markets and instruments. The document also provides an overview of key financial markets like capital markets, commodity markets, money markets, derivative markets, insurance markets, and foreign exchange markets.

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Saif Ahmed
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33 views5 pages

Major Players in Financial Markets

This document discusses the major players in financial markets. It identifies three principal groups: 1) Borrowers, such as individuals and businesses who need money to finance purchases or investments; 2) Savers/Investors, like individuals and firms who have money to invest; 3) Financial Institutions, which are the intermediaries like banks that help connect borrowers and savers through financial markets and instruments. The document also provides an overview of key financial markets like capital markets, commodity markets, money markets, derivative markets, insurance markets, and foreign exchange markets.

Uploaded by

Saif Ahmed
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Major Players in the Financial

Markets

Supervised by:
Mr. Sumon Das
Department of Management
University of Dhaka

Submitted By
MD. SHAIFUL HAQUE KHAN
ID: 3-14-27-076

Date of Submission
April 09, 2016

FINANCIAL MARKET:
Any marketplace where buyers and sellers participate in
the trade of financial securities, commodities, and other
fungible items of value at low transaction costs and at
prices that reflect supply and demand. Securities include
stocks and bonds, and commodities include precious
metals or agricultural goods.

Capital Market
Capital Market is a market where a government or a
company can raise money or capital to fund their
operations and long term investment. It acts as a bridge
between the investors and the companies/government.
Capital Markets consists of Primary and Secondary
Markets. Primary Markets is used to raise fresh capital
where secondary market is used to trade on securities
and bonds. Capital Market can also be divided into Bonds
Market & Stock Market.
Commodity Markets
Commodity Markets are basically those markets where
commodities are bought and sold or exchanged, Main
commodities include Crude Oil, Gold, Silver, Sugar etc.
The market is governed by regulated Commodities
Exchange.
Money Markets
Money Markets facilitate short-term lending and
borrowing. It offers a good alternative for high risk-based
lending. Common Money Market instruments include:
Banker's Acceptance, Certificate of Deposit, Commercial
papers, Money Market Mutual Funds, Treasury Bills,
Foreign Exchange Swaps and other such instruments.
Derivative Market

Derivative Market facilitates trading in different


derivatives. There are different types of derivatives
available like Futures, Options and Swaps. All the
derivatives trading are regulated by specialized
derivative exchanges.
Insurance Market
Insurance has been used successfully to transfer the risk
from one party to another one. The Insurance market acts
as a medium between between the insured and the
insurers and facilitates all kind of insurance related
transactions.
Foreign Exchange Market
Foreign Exchange Markets facilitate trading in different
currencies which also helps in cross-border transactions.
It also helps to decide the current currency exchange rate
between different currencies based on demand and
supply mechanism.

There are three principal sets of players that


interact within the financial markets:
1. Borrowers: Individuals and businesses that need
money to finance their purchases or investments.

2. Savers (Investors): Those who have money to


invest. These are principally individuals although firms
also save when they have excess cash.
3. Financial Institutions (Intermediaries):
The financial institutions and markets help bring
borrowers and savers together.

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