What is the financial market?
The financial market is a versatile deadline that covers the purchase and sale of cash goods. The financial market consists of primary and secondary markets that define the origin of cash goods and a wide selection of markets that define the type of cash goods. Some of the more well -known partial markets are shares, commodities and money markets. In most cases, the purchase and sale of items on the financial market has little physical component outside the sale for sale.
The cornerstone of the financial market is the movement of money, often through capital or raw materials. One party, the seller, has money and one person, the buyer wants it. Both parties make a cash exchange where the seller receives something that hopes to be more than what he sold. Both parties can receive real money, shares for the company or even another person's debt.
on the primary market, the original owner of the item sells it. In most cases, the item is sold only on the primary market when it first changes your hands. The secondary market is for the sale of PEtender goods unrelated to the original issuer. For example, a person is a public company and sells their shares on the primary market - the buyer then turns this shares and sells other people on the secondary market.
In addition to the original markets, the financial market has several markets that are defined by the types of monetary goods they sell. The capital market, which itself consists of a stock market and a bond market, manages the sale of corporate assets and debts. The commodity market oversees the purchase and sale of raw materials, which is a closely related Futures market where potential cash goods are purchased and sold. Monetary markets are processed by transactions of vvolving Pure Money, such as government bonds or foreign currency.
In most cases, people who buy and sell items on financial markets are of little interest in the actual products they buy. The entire exercise is a method of increasing money through applied toMisery and demand. When you buy soybeans in the commodity market, you rarely expect a shipment of soybeans in his house. The investor simply wants a ticket that says somewhere in the world is the amount of soybeans that belongs to him. This ticket can then be sold for profit later.