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ORGANIZATION OF FINANCIAL MARKETS
INTRODUCTION
Financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis (Copeland, et al., 1988).These markets mobilize and allocate fund globally; they provide a valuation or pricing functions that reflects a balancing of return required relative to the riskiness of the asset; they represent perceptions of market participants regarding future changes in interest rates and foreign exchange rates; and they finance balance of payments deficits of individual nations. (Eng, et al., 1998) Basically, it is a place where potential borrowers and lenders of a thing come together or are bridged together to complete their transactions.
Financial Markets have evolved drastically from the sixteenth century to its present shape. There are different types of financial markets which are mentioned below.
? FOREIGN EXCHANGE MARKET, which facilitates the trading of foreign currency and is also known as the CURRENCY MARKET.
? CAPITAL MARKETS which comprises of
? STOCK MARKET which provides financing by issuance of shares and there trade off.
? BOND MARKET which provides financing by issuance of bonds and there trade off.
? COMMODITY MARKET, which facilitates the trading of commodities.
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