Currency within certain areas, such as loan capital and securities financing of demand and supply relationship. Usually also means the financing of the market place. Various transactions in financial markets through banks and other financial institutions carried out the medium. Divided by regional area, there are domestic financial markets and international financial markets; according to the length of sub-capital loans, short-term financial markets and long-term financial markets.
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No. 2
[Financial Market Definition] from the general sense that the market is the concept of a trading mechanism, any kind of goods and services related to trading mechanisms can form a market. Market either have a specific physical market place, it can be invisible, especially in the case refers to, so we can put financial markets on financial transactions is defined as the mechanism of generalization, ie financial instruments transactions by financial intermediation the sum of the place and behavior. Financial markets are in a market system is an important part, both in common with the market system, have their own characteristics, which laid a special position in the market, the financial market system. Comprehensive and systematic study of financial markets is the basis for development and utilization of financial markets. [Financial markets form] Long before the formation of the financial markets, credit instruments already incurred. It is a product of the development of commercial credit. However, due to the limitations of commercial credit, these credit instruments can only exist in commodity buyers and sellers do not have a wide range of mobility. With the further development of commodity economy, on the basis of commercial credit, has produced a bank credit and financial markets. Bank credit and the emergence and development of financial markets, in turn, promote the development of commercial credit, credit instruments become trading tools to make financial markets and stimulate the potential importance of credit instruments. In modern financial markets, credit instruments, although still a major trading tools, but with a wide range of liquidity as well as to reflect stock options and other financial derivatives or ownership relations, they are tools on the market of financial transactions, and thus referred to as financial tool. [Financial markets form] Financial markets, there are two forms: one is the physical market, which traders concentrated in fixed locations and trading facilities for market place trading, the stock exchange is typical of the physical market; another one is invisible market, namely traders scattered in different locations (body) or using means of telecommunication market transactions, such as the OTC market and the global foreign exchange market belongs to the invisible market. [Classification of financial markets] By trading tools for different periods of the money market and capital market. Press the function of market distribution market (primary market) and circulation market (secondary market). Press the _set_tlement period of the spot and futures markets. The geographical local financial markets, national financial markets and international financial markets. According to different subject matter of the bill market trading, stock market (stock market, bond market, the fund market), derivatives markets, foreign exchange and gold markets. [Financial market relations with other markets] In a market economy, the various markets in allocating resources to play a fundamental role in these markets together into a complete, unified and interconnected organic system. Market system is divided into product markets (such as the consumer goods market, production market, tourism services market, etc.) and provide the conditions for the production of these products factor markets (such as labor markets, land markets, capital markets, etc.). Financial markets are an important part of a unified market system, belonging to the elements of the market. It is interconnected with the consumer market, production market, labor markets, technology markets, information markets, the real estate market and tourism services market and other types of markets, interdependence, common form an organic whole unified market. In the market system, the financial markets are essential part of one bond is linked to other markets. Because in the modern market economy, whether it is consumer information, the sale of the means of production, or the flow of technology and labor, various market transactions go through the movement of currency in circulation and money to implement, are inseparable from the financial markets The closely. In this sense, the development of the financial markets for the development of the market system plays an important regulatory role, the development of the market system in each market compared to other developments in financial markets provided the conditions and possibilities.
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Overview of Financial Markets
Financial markets is the capital of both suppliers and demanders of funds transactions through credit instruments and financial intermediation market, broadly speaking, is to achieve currency borrowings and financing, for a variety of market instruments and securities trading activities. Financial market, also known as capital markets, including money market and capital market, financial intermediation market. The so-called financial intermediation, refers to the process of economic operation, both supply and demand of funds using a variety of financial instruments regulating the activities of the surplus funds, is the general term for all financial trading activities. Trading in the financial markets to a variety of financial instruments such as stocks, bonds, certificates of deposit and other savings. Financing referred to as financing, generally divided into two types of direct financing and indirect financing. Direct financing, capital supply and demand sides direct financing activities, which is directly financing capital needs have surplus funds to institutions and individuals in the community through financial markets; Correspondingly, indirect financing refers to funds through bank intermediation conducted activity, that is, those who take the form of capital requirements to banks and other financial intermediaries for loans financing. All aspects of the financial markets has a direct economic activity profound effects, such as personal wealth, business enterprises, the efficiency of the economy, are directly dependent on the financial market activities. Financial market constitute a very complex system, it is a huge market many different composition. However, generally based on financial market trading tools deadline, the financial markets into the money market and capital market into two categories. Money market funds are short-term financing market, capital market financing long-term funding markets. Money market and capital market can be further sub-divided into a number of different markets. Interbank money markets, including financial markets, repo market, the commercial paper market, bankers' acceptances market, short-term government bond market, large denomination negotiable certificates of deposit markets. Capital markets, including long-term credit markets and the securities markets. Long-term credit markets are financial institutions and industrial and commercial loan market between enterprises; stock market is for market financing through the issuance and trading of securities, including the bond market, stock market, fund market, insurance market, finance leasing markets.
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Formation of financial markets
Long before the formation of the financial markets, credit instruments already incurred. It is a product of the development of commercial credit. However, due to the limitations of commercial credit, these credit instruments can only exist in commodity buyers and sellers do not have a wide range of mobility. With the further development of commodity economy, on the basis of commercial credit, has produced a bank credit and financial markets. Bank credit and the emergence and development of financial markets, in turn, promote the development of commercial credit, credit instruments become trading tools to make financial markets and stimulate the potential importance of credit instruments. In modern financial markets, credit instruments, although still a major trading tools, but with a wide range of liquidity as well as to reflect stock options and other financial derivatives or ownership relations, they are tools on the market of financial transactions, and thus referred to as financial tool.
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Forms of financial markets
Financial markets, there are two forms: one is the physical market, which traders concentrated in fixed locations and trading facilities for market place trading, the stock exchange is typical of the physical market; another one is invisible market, namely traders scattered in different locations (body) or using means of telecommunication market transactions, such as the OTC market and the global foreign exchange market belongs to the invisible market.
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Financial market system
Constitutes a financial market system is the form of the financial markets. Financial market system in several major sub-markets have their things in common: 1, the risk (uncertainty): for example, the risk of the stock market, the foreign exchange market risks. 2, the price to value-based, affecting supply and demand: the volatility of stock prices, bond prices fluctuate, the value of the reaction eventually affected the supply and demand relationship. 3 fundamentals, affect bond prices circulation, affecting stock prices, exchange rate fluctuations and other analyzes necessary to consider the macroeconomic impact, but also consider the impact of micro-economic and so on. Financial market system similar or dissimilar related content: 1, the function of financial markets, interbank markets function, the function of the bond market, the stock market's function, the function of the foreign exchange market, the futures market functions. 2, participants in the foreign exchange market, futures market participants interbank market participants. 3, discount, rediscount rediscount. 4, bills of exchange, promissory notes and checks similarities and differences, and so on. Classification of financial market system Financial market system, including money market, capital market, foreign exchange market and the gold market, and is generally based on financial market trading tools deadline, the financial markets into the money market and capital market into two categories. 1, money market Money market funds are short-term financing markets, including the interbank lending market, repo market, the commercial paper market, bankers' acceptances market, short-term government bond market, large denomination negotiable certificates of deposit market. 2, Capital Markets The capital market is long-term capital market financing, including long-term bank credit and securities markets. Long-term credit markets are lending market between financial institutions and businesses, the stock market is to conduct market financing through the issuance and trading of securities, including the bond market, stock market, insurance market, finance leasing markets.
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Classification of financial markets
Financial market study from a different perspective, can be classified as follows: (1) can be divided according to geographical scope: ① international financial markets, the international monetary business operations of financial institutions, whose operations include the borrowing of funds, foreign exchange, securities trading, capital transactions. ② domestic financial markets by domestic financial institutions, for a variety of currencies, securities and the role of business activities. It consists of urban and rural financial markets in financial markets, or divided into national, regional and local financial markets. (2) the premises can be divided into: ① tangible financial markets with fixed premises and operation of the facility in financial markets; ② invisible financial markets in the form of operating the network market, by means of electronic telecommunications in the transaction. (3) the period divided by financing transactions: ① Long-term capital markets (capital markets), the main supply more than one year and long-term funds, such as the issuance and circulation of stocks and long-term bonds; ② short-term funding markets (money market), is less than one year short-term capital market financing, such as lending, discounted bills, short-term bonds and negotiable certificates of deposit of trading. (4) the nature of the transaction is divided into: ① distribution market, also known as a market, is a new issue of securities markets; ② circulation market, also known as the secondary market, is already issued, in circulation in the trading market securities. (5) by trading off by objects into the market, discount market, large certificates of deposit market, securities market (including stock markets and bond markets), the foreign exchange market, the gold market and the insurance market. (6) by the delivery period can be divided into: ① financial spot market, after the delivery of immediate payment transaction financing activities; ② financial futures market, under the contract at a specified delivery date of the payment transaction after the investment and financing activities. In accordance with the intrinsic link above to divide the financial markets scientific system is the basis for effective management of the financial markets.
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Financial markets function
For financial markets, the economic development of a country has many functions: ① financial intermediation "media device." Make money through the financial markets and suppliers who need capital financing through independently conducted on a larger scale, the aggregation of multiple channels into a small monetary fund large source of funds. ② money supply and demand, "the regulator." Central bank through open market operations can, adjust the money supply, credit scale in favor of state control, and favor the use of money market interest rates determined by supply and demand, interest rates play a role in promoting. ③ economic development "lubricant." Financial market and promoting inter-regional cooperation funds, contributing to the development of competition aspects of financial intermediation, improve capital efficiency. A brief summary: The most basic function of financial markets is to meet the social reproduction process of investment demand, and facilitate capital concentration and conversion. There are five main features: ※ effectively mobilized to raise funds ※ rational allocation of funds and guide ※ flexible scheduling and conversion of funds ※ achieve risk diversification, reduce transaction costs ※ achieve macro-control
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The basic elements of the financial markets
A complete financial market, should include three basic elements: (1) capital providers and funding needs. Including government, financial institutions, enterprises and institutions, residents, foreign, etc., which can provide funds to financial markets, but also from the financial markets to raise funds. This is a fundamental factor in the financial markets to the formation and development. (2) credit instruments. This is the object loan capital in the financial markets transactions. Such as various bonds, stocks, notes, negotiable certificates of deposit, loan contracts, mortgage deeds, etc., is to achieve investment, financing activities must rely on the financial market targets. (3) the credit intermediary. This means that some of the parties to act as an intermediary capital supply and demand plays a contact, the role of media and agency trading institutions, such as banks, investment companies, stock exchanges, securities dealers and brokers. (4) price. Prices in financial markets that the value it represents the sum of money that is required funds and represents the interest rate or yield.
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The relationship between financial markets and other markets
In a market economy, the various markets in allocating resources to play a fundamental role in these markets together into a complete, unified and interconnected organic system. Market system is divided into product markets (such as the consumer goods market, production market, tourism services market, etc.) and provide the conditions for the production of these products factor markets (such as labor markets, land markets, capital markets, etc.). Financial markets are an important part of a unified market system, belonging to the elements of the market. It is interconnected with the consumer market, production market, labor markets, technology markets, information markets, the real estate market and tourism services market and other types of markets, interdependence, common form an organic whole unified market. In the market system, the financial markets are essential part of one bond is linked to other markets. Because in the modern market economy, whether it is consumer information, the sale of the means of production, or the flow of technology and labor, various market transactions go through the movement of currency in circulation and money to implement, are inseparable from the financial markets The closely. In this sense, the development of the financial markets for the development of the market system plays an important regulatory role, the development of the market system in each market compared to other developments in financial markets provided the conditions and possibilities.
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Accounting encyclopedia
From a general sense, the concept of a market is trading mechanism, any kind of goods and services related to trading mechanisms can form a kind of market. Market either have a specific physical market place, it can be invisible, especially in the case refers to, so we can put financial markets on financial transactions is defined as the mechanism of generalization, ie financial instruments transactions by financial intermediation the sum of the place and behavior. Financial markets are in a market system is an important part, both in common with the market system, have their own characteristics, which laid a special position in the market, the financial market system. Comprehensive and systematic study of financial markets is the basis for development and utilization of financial markets.
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Wikipedia Encyclopedia
Financial market Borrowing money market funds both sides, buyers and sellers of securities financing and Place securities transactions. Constitute the basic elements of financial markets is both supply and demand of funds and securities, financial intermediaries And financial instruments. Participants in the financial market supply and demand activities are mainly corporate, personal, financial Institutions, brokers, securities companies and government agencies. Mainly through financial intermediaries supplier Banks, insurance companies, investment companies, financial companies, stock exchanges and so on. Use of Financial instruments are mainly government bonds, financial bonds, corporate bonds, loan contracts, financial Negotiable certificates of deposit issued by institutions and some of the bills. Trading in financial markets and more Species diversity. Either concentrated in a fixed place for the transaction to be developed through the use of Separated by thousands of miles letter tool instantaneous long-distance trade; either bilateral trade can be. To multilateral trade. Financial markets in financial instruments on the different lengths of the agreed period, you can Classified as money market (within one year) and capital markets (more than one year); according to the transaction Objects, can be divided into the money market, capital market, foreign exchange market, gold market, etc.; After the transaction by delivery time is different, can be divided into spot and forward trading in the spot market Delivery of futures markets; according to old and new securities trading as different objects, can be divided into securities Distribution market and the securities market, securities market were also referred to as primary and secondary securities Market; according to different geographical coverage, can be divided into local, national, regional, national The occasion of the financial markets. These markets are not completely separate, but interrelated, with Interdependent. Thus, financial intermediation in financial markets is a versatile, multi-level city Field of the sum. Object distinction financial markets and commodity markets in general are not in its trading Is a commodity with a wide variety of use-value, but a special supplier of funds and securities of the class Products, and to demonstrate its value by interest rates or securities prices. In the financial markets, Interest rates and securities prices are closely related. When interest rates rise, the price of securities Down; Conversely, when interest rates fall, securities prices. Therefore, the high level of interest rates Low for both lenders and borrowers are crucial. The level of interest rates in the financial markets owned by Gold supply and demand conditions affecting, and capital supply and demand conditions and subject to the average profit margin of the market The result of competition is consistency in the level of interest rates. Therefore, an important feature that is financial market Uniformity and consistency relative prices of goods. The formation of the financial markets has the following Conditions aspects: ① relatively stable political and economic environment, investors can effectively guarantee Interests. ② There accommodative financial environment, more flexible allocation of funds, any participation in financial transactions Easy persons without discrimination. ③ financial institutions, more concentrated, more developed credit system, management system Comparative sound. ④ communication facilities, and convenient transportation. ⑤ high professional standards and Wealth of business experience professional team can provide more efficient financial services. Development of financial markets and the economic development of the countries in the world economy, international trade The development has a major role in promoting: ① facilitate financing and investment, monetary funds in a timely manner Flow needs areas in need. ② facilitate long-term and short-term mutual funds into capital, The dispersed flow of funds into long-term funds (issue of shares, bonds, etc.); length Investment can be changed instantly currency (forward bills discounted). ③ liquidity credit instruments And improved safety. ④ flexible scheduling convenience commercial bank funds. ⑤ facilitate inter-regional, national Interdepartmental transfer of funds to accelerate the process of internationalization of banks. An easy way to suppress international interest rates a total water Flat,
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Financial Markets (financialmarket)
The financial intermediation market, broadly speaking, is to achieve currency borrowings and financing, for a variety of instruments and securities market trading activities and fund of funds providers who were required to trade through the role of both tools. A complete financial market, should include three basic elements: (1) capital providers and funding needs. Including government, financial institutions, enterprises and institutions, residents, foreign, etc., which can provide funds to financial markets, but also from the financial markets to raise funds. This is a fundamental factor in the financial markets to the formation and development. (2) credit instruments. This is the object loan capital in the financial markets transactions. Such as various bonds, stocks, notes, negotiable certificates of deposit, loan contracts, mortgage deeds, etc., is to achieve investment, financing activities must rely on the financial market targets. (3) the credit intermediary. This means that some of the parties to act as an intermediary capital supply and demand plays a contact, the role of media and agency trading institutions, such as banks, investment companies, stock exchanges, securities dealers and brokers. Financial market study from a different perspective, can be classified as follows: (1) can be divided according to geographical scope: ① international financial markets, the operation of the international monetary financial institutions business, its operations include capital lending, foreign exchange trading, securities trading, capital transactions. ② domestic financial markets by domestic financial institutions, for a variety of currencies, securities and the role of business activities. It consists of urban and rural financial markets in financial markets, or divided into national, regional and local financial markets. (2) the premises can be divided into: ① tangible financial markets with fixed premises and operation of the facility in financial markets; ② invisible financial markets in the form of operating the network market, by means of electronic telecommunications in the transaction. (3) the period divided by financing transactions as follows: ① long-term capital markets (capital markets), the main supply more than one year and long-term funds, such as the issuance and circulation of stocks and long-term bonds; ② short-term funding markets (money market), is a In the following short-term capital market financing, such as lending, bills discounting, short-term bonds and negotiable certificates of deposit of trading. (4) the nature of the transaction is divided into: ① distribution market, also known as the primary market, new issuance of securities markets; ② circulation market, also known as the primary market, is already released in the trading market for the securities in circulation. (5) by trading off by objects into the market, discount market, large certificates of deposit market, securities market (including stock markets and bond markets), the foreign exchange market, the gold market and the insurance market. (6) by the delivery period can be divided into: ① financial spot market transaction payment financing activities immediately after delivery; ② financial futures market, investment and financial transactions after the event under the contract at a specified delivery date of payment. In accordance with the intrinsic link above to divide the financial markets scientific system is the basis for effective management of the financial markets. For financial markets, the economic development of a country has many functions: ① financial intermediation "media device." Make money through the financial markets and suppliers who need capital financing through independently conducted on a larger scale, the aggregation of multiple channels into a small monetary fund large source of funds. ② money supply and demand, "the regulator." Central bank through open market operations can, adjust the money supply, credit scale in favor of state control, and favor the use of money market interest rates determined by supply and demand, interest rates play a role in promoting. ③ economic development "lubricant." Financial market and promoting inter-regional cooperation funds, contributing to the development of competition aspects of financial intermediation, improve capital efficiency.
equity