A market is a place where two parties can gather to facilitate the exchange of goods and services.
Financial market refers to any place where securities , derivatives , commodities, currencies are traded between two parties.
Examples of securities are shares, bonds, options, mutual funds, ETF’s, Debt.
There are primarily two types of markets. Capital Markets and Money Markets. These markets act as a source of raising finance for businesses.Capital markets are used for long term financing and Money markets for short term financing.
Stocks, Bonds, Derivatives, commodities are examples of capital markets. Assets like Treasury Bills, Certificates of deposits from banks, Commercial papers from corporations fall under money markets.
Some of the most popular types of financial markets are :
All of these markets can be either physical or virtual.
Practice Financial Markets – Beginner