Hey, here I am starting some important short points on secondary market, primary market, and money market
With this I just trying to approaching the concept of share market, to know the layman people to get knowledge of share market, this is just little try by me to aware layman people, here I post some pictograms and examples which helps allot to understand the way of stock market, and updating is always be first preference as I am trying ….
Suggestion will be admirable at your side…
First we know about the financial system of India….
Financial system of India consist of two major market
1. MONEY MARKET
2. CAPITAL MARKET
Financial markets are important component of financial system in an economy, financial system aims at establishing a regular, smooth, efficient, and cost effective link between savers and investors. Financial system provides a place where financial resources are available to meet saving and investing requirements of people…
Various constituents of financial are- financial institutions, financial services, practices, procedures, rules and regulations, financial markets and financial instruments.
FINANCIAL INSTITUTION:-
They are the participant’s n financial market. They are business organizations dealing in financial resources. They collect resources by accepting deposits from individual and institutions and lend them to trade, industry and others.
They buy and sell financial instruments and many times generate financial instruments, they deal financial assets and accept deposits, grant loans, and invest in securities..
In financial markets there are regulatory institutions also i.e. those framing rules and regulations for operations by financial institutions and for the functioning the financial markets, e.g. (RBI reserve bank of India).SEBI (securities exchange board of India).
Intermediary financial institutions are those which intermediate between savers and investors. They collect money from savers directly and lend to investors or borrowers. Commercial banks cooperative credit societies and banks are intermediaries in the banking sectors.
On the other hand UTI (unit trust of India), LIC (life insurance corporations), GIC (general insurance company) are the example of no-banking financial intermediaries. Non-intermediaries can lend money but don’t accept deposits. IDBI (industrial development bank of India), IFCI (industrial financial corporation of India), NABARD (national bank for agriculture and rural development) these institutions were created by government to provide financial assistance for specific purposes and sectors…
Financial services
Financial institutions provide a variety of services. Such as
Insurance
Hire purchase
Installment credits
Brokerage
Stock holding
Underwriting
Portfolio management
Leasing
Technical and economic consultancy
Credit information
Acceptances
Credit rating etc...
Financial markets
Financial markets are the centers or arrangements facilitating buying and selling of financial claims, assets, services and securities. Banking and non- banking financial institutions, dealers, borrowers, and lenders, investors and savers, and the agents are the participants on demand and supply side in these markets.
Classification of markets....
