Types of financial markets
Different markets where various financial assets like stocks, bonds, and commodities are traded.
There are several types of financial markets, each dealing with different types of assets:
Stock Market: Where shares of companies are bought and sold.
Bond Market: Where bonds are traded. Bonds are loans made to companies or governments in exchange for regular interest payments.
Commodity Market: This is where physical goods like gold, silver, oil, or agricultural products are bought and sold.
Forex Market: This is the largest financial market, where currencies like the rupee, dollar, or euro are traded.
Derivatives Market: Where contracts (like futures and options) are traded. These contracts derive their value from other financial assets, like stocks or bonds.
Each market serves a different purpose but is vital to the overall financial system.