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FINANCIAL MARKET IN A NUTSHELL
1. Financial Market mainly comprises of (a) Capital Market and (b) Money Market.
2. Capital Market instruments are Equity (stock) and Debt (bond), investing in which is high-risk, with unsteady higher returns.
3. Money Market instruments include
treasury bills, commercial paper, bankers' acceptances, certificates of deposit, bills of exchange, repurchase agreements, govt. funds, and short-lived mortgage- and asset-backed securities, investing in which is low-risk, with steady lower returns.
4. Usually, investors access Capital Market to grow assets for long-term goals.
5. Usually, investors access Money Market for liquidity, fixed income and holding assets up to 1 year.
2. Capital Market instruments are Equity (stock) and Debt (bond), investing in which is high-risk, with unsteady higher returns.
3. Money Market instruments include
treasury bills, commercial paper, bankers' acceptances, certificates of deposit, bills of exchange, repurchase agreements, govt. funds, and short-lived mortgage- and asset-backed securities, investing in which is low-risk, with steady lower returns.
4. Usually, investors access Capital Market to grow assets for long-term goals.
5. Usually, investors access Money Market for liquidity, fixed income and holding assets up to 1 year.