The financial markets
are markets which facilitate the raising of funds or the investment
, depending on viewpoint. They also facilitate handling of various risks. The financial markets can be divided into different subtypes:
- Capital markets consists of:
- Money markets, which provides short term debt financing and investment.
- Derivatives markets, which provides instruments for handling of financial risks.
- Futures marketss, which provide standardised contracts for trading assets at some forward date
- Insurance markets, which facilitates handling of various risks.
- Foreign exchange markets
These markets can be either Primary markets or Aftermarkets.