Definition: Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country’s economy. It acts as an intermediary between the savers and investors by mobilising funds between them.
The 2016 ranking features a record 90 programmes, up from 70 in 2014.
Functions of Financial Market
“My manifesto with Summly was to get our technology into as many users’ hands as possible,” Mr D’Aloisio said, pointing to Yahoo’s hundreds of millions of users. “With Yahoo’s reputation as a content portal, we have an opportunity to fundamentally change the way content is consumed.”
- It facilitates mobilisation of savings and puts it to the most productive uses.
- It helps in determining the price of the securities. The frequent interaction between investors helps in fixing the price of securities, on the basis of their demand and supply in the market.
- It provides liquidity to tradable assets, by facilitating the exchange, as the investors can readily sell their securities and convert assets into cash.
- It saves the time, money and efforts of the parties, as they don’t have to waste resources to find probable buyers or sellers of securities. Further, it reduces cost by providing valuable information, regarding the securities traded in the financial market.
The financial market may or may not have a physical location, i.e. the exchange of asset between the parties can also take place over the internet or phone also.
Classification of Financial Market
- By Nature of Claim
- Debt Market: The market where fixed claims or debt instruments, such as debentures or bonds are bought and sold between investors.
- Equity Market: Equity market is a market wherein the investors deal in equity instruments. It is the market for residual claims.
- By Maturity of Claim
- Money Market: The market where monetary assets such as commercial paper, certificate of deposits, treasury bills, etc. which mature within a year, are traded is called money market. It is the market for short-term funds. No such market exist physically; the transactions are performed over a virtual network, i.e. fax, internet or phone.
- Capital Market: The market where medium and long term financial assets are traded in the capital market. It is divided into two types:
- Primary Market: A financial market, wherein the company listed on an exchange, for the first time, issues new security or already listed company brings the fresh issue.
- Secondary Market: Alternately known as the Stock market, a secondary market is an organised marketplace, wherein already issued securities are traded between investors, such as individuals, merchant bankers, stockbrokers and mutual funds.
- By Timing of Delivery
- Cash Market: The market where the transaction between buyers and sellers are settled in real-time.
- Futures Market: Futures market is one where the delivery or settlement of commodities takes place at a future specified date.
- By Organizational Structure
- Exchange-Traded Market: A financial market, which has a centralised organisation with the standardised procedure.
- Over-the-Counter Market: An OTC is characterised by a decentralised organisation, having customised procedures.
As early as 2008, wearable technology—which can range in anything from measuring your heart rate to curating music based on your mood—has been touted as the next big moment in consumer electronics.
The ability of customers to air their dirty laundry to the world via Twitter and Facebook has already changed the customer service game. A 2012 Nielsen survey shows more than half of all customers now turn to social media for redress; meanwhile, some 81% of Twitter users expect a same-day response to questions and complaints. But this fall, things got even more interesting: On Sept. 2, British Airways passenger Hasan Syed spent an estimated $1,000 to purchase several promoted Tweets blasting the company for losing luggage. With paid social media now in customers' arsenal, 2014 may mark the beginning of the end of abysmal customer service at major airlines, credit card companies, banks, and other repeat offenders, characterized by endless phone wait times and those automated "phone trees" (i.e., "Press 1 for English, 2 for Spanish, 3 to waste your entire afternoon on hold ...").
Say this about Bank of America chief Brian Moynihan: He certainly knows how to talk the talk. In his letter to shareholders, Moynihan went out of his way to thank U.S. taxpayers for making $45 billion in TARP funds available. He also described how he is working closely with 'policy leaders' on financial reform. Whether he can walk the walk - i.e., turn around BofA's fortunes - is another matter. While the company did repay its TARP loan in December, it is still sitting on billions of dollars of vulnerable residential and commercial mortgage debt - one reason the company spent 8,000 words discussing risk in its annual report.