Overview of Financial Markets | MODULE D: FINANCIAL PRODUCTS AND SERVICES
MODULE D: FINANCIAL PRODUCTS AND SERVICES Overview of Financial Markets Click on each topic for details" What is a Financial Market? A financial market is a platform or mechanism that facilitates the buying and selling of financial instruments like stocks, bonds, derivatives, currencies, and more. It helps channel savings into productive investments. Evolution of the Financial Market Financial markets have evolved from informal money lending practices in ancient times to formal institutions like stock exchanges and digital trading platforms. Key milestones include the formation of the Amsterdam Stock Exchange in 1602, the growth of central banks, and the advent of online trading and cryptocurrencies. Segments of Financial Markets Financial markets can be broadly categorized into: Money Market – Short-term funds (less than a year), e.g., Treasury Bills. Capital Market – Long-term securities like ...