Banking Sector Analysis
1 INDUSTRY PROFILE
2.1 FINANCIAL MARKETS A financial market is a market in which people and entities can trade 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.
Types of financial markets * Capital markets which consist of: * Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof. * Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading thereof. * The capital markets may also be divided into primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets, such as during initial public offerings. Secondary markets allow investors to buy and sell existing securities. The transactions in primary markets exist between issuers and investors, while in secondary market transactions exist among investors. * Commodity markets, which facilitate the trading of commodities. * Money markets, which provide short term debt financing and investment. * Derivatives markets, which provide instruments for the management of financial risk. * Futures markets, which provide standardized forward contracts for trading products at some future date; see also forward market. * Insurance markets, which facilitate the redistribution of various risks. * Foreign exchange markets, which facilitate the trading of foreign exchange.
Constituents of Financial Market
Based on market levels * Primary market: Primary market is a market for new issues or new financial claims. Hence it’s also called new issue market. The primary market deals with those securities which are issued to the public for the first time. * Secondary market: It’s a market for secondary
2.1 FINANCIAL MARKETS A financial market is a market in which people and entities can trade 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.
Types of financial markets * Capital markets which consist of: * Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof. * Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading thereof. * The capital markets may also be divided into primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets, such as during initial public offerings. Secondary markets allow investors to buy and sell existing securities. The transactions in primary markets exist between issuers and investors, while in secondary market transactions exist among investors. * Commodity markets, which facilitate the trading of commodities. * Money markets, which provide short term debt financing and investment. * Derivatives markets, which provide instruments for the management of financial risk. * Futures markets, which provide standardized forward contracts for trading products at some future date; see also forward market. * Insurance markets, which facilitate the redistribution of various risks. * Foreign exchange markets, which facilitate the trading of foreign exchange.
Constituents of Financial Market
Based on market levels * Primary market: Primary market is a market for new issues or new financial claims. Hence it’s also called new issue market. The primary market deals with those securities which are issued to the public for the first time. * Secondary market: It’s a market for secondary
Bibliography: www.wikipedia.org http://www.economywatch.com http://www.investmentyogi.com http://www.ftkmc.com http://www.allbankingsolutions.com http://www.managementstudyguide.com http://www.moneycontrol.com http://www.investmentbazar.com http://www.hdfcfund.com/