Classification
Financial market from different perspective, can be classified as
follows:
( 1) according to the geographic area can be divided into:
International financial markets, from the operation of international currency between business of financial institutions, its business includes borrowing funds, foreign exchange trading, securities trading, financial transactions.
The domestic financial market, by domestic financial institutions, for a variety of currency, securities and the role of business activities. It is divided into the city of financial market and the rural financial market, or is divided into national, regional, local financial market.
( 2 ) according to the premises can be divided into:
The tangible financial market,Production House a
fixed place and operating facilities in the financial market;
The intangible financial markets, with trading network in the form of market, by means of electronic trading.
( 3 ) according to the financing transaction period is divided
into:
The long-term capital market ( capital market ), the main supply
for more than a year and long-term capital, such as stocks and
bonds issuance and circulation;
The short-term money market ( money market ), is a year following
short-term financing market, such as the interbank lending, bill
discounting, short-term debt and negotiable certificate of deposit
business.
(4 ) according to the nature of the transaction is divided
into:
First issuance market,bridgestone
also known as market level, is the new issue market;
The circulation market, also known as two class market, is already
issued, in circulation in the trading of the securities market.
( 5) according to the transaction object is divided into by
folding the market, discount market, jumbo CDS market, securities
market ( include stock market and bond market ), the foreign
exchange market, the gold market and insurance market.
( 6) according to the delivery period can be divided into:
Financial spot market transactions, financing activities
immediately after delivery versus payment;
The financial futures market,MotoGP investment
and financing activities after the transaction according to the
contract on the date specified delivery versus payment. According
to the internal relations of financial markets Science Division of
the system, is fundamental to the effective management of financial
market.
( 7) according to the transaction object is divided into:
The money market
The capital market
Financial derivatives market
The foreign exchange market
The insurance market
The gold and other commodities market
Function
Said simply that it has four major functions: 1, 2, 3, hedge
financing regulation 4, signal
1 the financial market can quickly and effectively guide the
reasonable flow of funds,wireless keyboards improve the
efficiency of capital allocation.
( 1) expand the fund supply and demand both sides contact opportunities, facilitate the financial transactions, reduce financing cost, raise capital to use benefit.
( 2) financial market financing and investors opened up a broader financing channels.
( 3) financial market for various durations, content of different financial instruments exchange provides necessary condition.
The 2 financial markets are pricing function, financial market price fluctuations and changes is economic activity barometer.
