Financial Market By Akhmadov Shakhzod Financial system


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MIRAZIZ, 1 Fizika dars ishlanma 7-sinf, Fe’l yaxshi test, Fe’l yaxshi test, 2-тема уз (1), informatika-oqitish-metodikasi, 12-maktab 04.05.2021, Документ Microsoft Word, Документ Microsoft Word, №2 ELЕKTR TОGÍNАN ZАQÍMLАNĠАN HÁM BАSQА BАХÍTSÍZ HÁDІYSЕGЕ USHÍRАĠАNLАRĠА, №2 ELЕKTR TОGÍNАN ZАQÍMLАNĠАN HÁM BАSQА BАХÍTSÍZ HÁDІYSЕGЕ USHÍRАĠАNLАRĠА, №2 ELЕKTR TОGÍNАN ZАQÍMLАNĠАN HÁM BАSQА BАХÍTSÍZ HÁDІYSЕGЕ USHÍRАĠАNLАRĠА, №2 ELЕKTR TОGÍNАN ZАQÍMLАNĠАN HÁM BАSQА BАХÍTSÍZ HÁDІYSЕGЕ USHÍRАĠАNLАRĠА, Komp`yuterning arxitekturasi va asosiy quril

Financial Market


By Akhmadov Shakhzod

Financial system


Financial instruments

Financial services

Financial institutions

Financial markets


FINANCIAL MARKETS


Financial markets facilitate buying and selling of financial instruments or services.

It is a market for the creation and exchange of financial assets such as shares, debentures, bonds and Government securities.


HOW ALLOCATION OF FUNDS WORKS?


House holds

Savers


Business firms

Investors

Banks

Financial Markets


HOW ALLOCATION OF FUNDS WORKS?

  • There are two alternatives through which allocation of funds can be done - Banks and financial markets
  • Households can deposit their surplus funds with banks. Banks lend these funds to business firms.
  • Households can also buy shares and debentures offered by business through the financial markets.
  • The process of allocation of funds is known as financial intermediation.

FUNCTIONS OF FINANCIAL MARKET


Mobilises savings

Facilitating price discovery

Providing liquidity to financial assets Reducing cost of transactions

Mobilise savings

A financial market facilitates transfer of savings from people to investors. It offers the savers different investment avenues and helps to channelise surplus funds into productive use.

Facilitating price discovery


Price of any product or service in a market is determined by the forces of demand and

supply. Households are suppliers of funds and business firms are the sources of demand


Providing liquidity to financial assets


Financial markets provide liquidity to financial assets. This is possible because of the ease in

the purchase and sale of financial assets.


Reducing the cost of transactions


Financial markets provide up-to-date and valuable information about securities traded

in the market. So it saves time , effort and money required to be spent by both buyers and sellers to find out each other.


Money Market

      • is the leader
        • Money market is a market for short term funds, which deals in monetary assets with period of maturity up to 1 year
        • Commercial banks & development Financial Institutions are major players

Fatures of Money Market

  • Safety – Short term duration of transactions ensures greater safety
  • Location – No physical location
  • Returns – expected returns are less compared to other markets
  • Security- Instruments traded are unsecured

SUB MARKETS OF INDIAN MONEY MARKET


Call money market

Commercial bill market

Commercial paper Certificate of deposit

Commercial bill market

  • Market for bill of exchange
  • Discounted bills are rediscounted in the commercial bill market
  • Provides short term liquidity to banks
  • RBI,LIC,UTI,GIC,ECGC offer re-discount facilities

Certificate of deposit(CD)

  • A document of title issued by commercial banks on deposits
  • Traded in money market
  • Introduced in 1989
  • Minimum amount is Rs.1,00,000

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