Financial Markets

The Financial Markets provides buyers and sellers with the means to trade a wide range of financial instruments. For a Financial Market to be successful, this must be done in a transparent, secure and efficient process.

A Financial Market refers to a market exchange where securities are traded. The Financial Markets have evolved. They can be physical locations, for example the NYSE on Wall Street, or an electronic or virtual market. For a Financial Market to be viable, they must offer price transparency and discovery between market participants, efficient settlements and in certain cases custodianship of the securities traded.

There are 5 main types of Financial Markets based on the securities traded.

Stock Market – The trading of share certificates in publicly listed companies.
Bond Market – The trading of Bonds, Government or Corporate.
Commodities – The trading of a wide range of Commodities from Agricultural commodities, Energy and Minerals.
Derivatives Markets – Covering Futures and Options
Currency Markets – The exchange of one currency for another at the current exchange rate.