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7 Valuation of Securities 5* 7 3
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Expenditure Decision
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Books
Chapter 2
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Syllabus – Overview of Financial Markets
1. Financial Markets
2. Functions and Classifications of Financial Markets
3. Money Market
4. Forex Market
5. Government Securities Market
6. Capital Market
7. Derivatives Market
8. International Capital Markets
9. Participants
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Financial System
1.
Funds
Financial Markets:
Funds
Money Market
Securities Capital Market… Securities
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Financial System
development
• Liquidity Function: convert investments to money
insurance, hedge
• Policy Function: Govt policies for welfare like lower
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1. Financial Markets
1.
• Money Market
• Forex Market
• Government Securities Market
• Capital Market
• Derivatives Market
• International Capital Markets
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2. Functions and Classifications of Financial
Markets
1.
• Price Discovery
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Classifications of Financial Markets
Debt Market
• Nature of Claim
Equity Market
Money Market
• Maturity of Claim
Capital Market
Primary Market
• Seasoning of Claim
Secondary Market
Cash or Spot Market
• Timing of Delivery
Forward or Futures Market
Exchange-traded Market
• Organizational Structure
Over-the-counter Market
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3. Money Market
1.
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7. Derivatives Market
1.
OTC
Exchange
maturity.
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Types of Traders in Derivatives
•Hedgers
•Speculators
•Arbitrageurs
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8. International Capital Markets
1.
They include
• Financial Institutions: IDBI, IFCI, ICICI, IIBI, Exim
Bank, SFCs, SIDCs
• Insurance Companies: LIC, GIC etc.
• Investment Institutions: UTI, Mutual Funds,
Commercial Banks, NBFCs, Housing Finance
Companies, Foreign Institutional Investors
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