A financial market is a platform or system of economic exchange. Markets play a fundamental economic role as a means for trading currency, assets, securities and financial instruments. Each market may include institutions, infrastructure, systems, policies, procedures, regulations and a set of social conventions. The following are common examples of markets.
StocksA market for buying and selling stocks that represent ownership interest in a business. Stock markets also typically trade certain types of securities such as exchange traded funds that implement a variety of investment strategies.
BondsMarkets for issuing new debt or buying and selling existing debt securities. Many bond markets are over-the-counter meaning that they rely on a dealer network as opposed to an exchange.
DerivativesA financial market for trading contracts such as futures, options and credit default swaps. Includes both exchanges and over-the-counter markets.
Foreign Exchange MarketA decentralized market for trading currencies. The largest market in terms of trading volume with mostly large financial institutions participating.
Commodity MarketMarkets for commodities such as energy, metals and agricultural products. It is common to bet on the prices of commodities without taking delivery with a variety of derivatives.
Money MarketTrading in short-term debt instruments such as treasury bills, commercial paper, certificates of deposit, bills of exchange, repurchase agreements, federal funds and asset-backed securities.
Real Estate MarketThe market for real estate primarily involves agents that represent buyers and sellers.
ReinsuranceA market for insurance purchased by insurance companies. A method for transferring risk.
This is the complete list of articles we have written about finance.
If you enjoyed this page, please consider bookmarking Simplicable.
A complete overview of monetary policy with a helpful cheatsheet.
A guide to finance.
An overview of a Keynesian beauty contest, an investing theory.
A list of the core ideas of behavioral finance.
An overview of revenue per employee including how it is calculated and used.
A list of common financial objectives for businesses.
A list of common types of capital.
The definition of capital investment with examples.
The common types of wealth.
A basic overview of money.
The basic characteristics of gold including its properties, financial and cultural significance.
The difference between two common investment measurements.
An overview of Regression Toward The Mean.
An overview of the Efficient Market Hypothesis.
An overview of animal spirits, a theory of investing.
A definition of Mr. Market, an investing theory.
A definition of organic growth with examples.
The common types of concept company.
A definition of information costs with examples.
The definition of channel check with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
© 2010-2023 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.