To put it bluntly, finance is investment and financing.
What are the classifications of financial markets?
First, according to the maturity of trading instruments, it can be divided into money market and capital market.
Money market is also called short-term financial market, and the investment and financing period does not exceed 1 year.
Capital market, also known as long-term financial market, has a history of investment and financing of over 1 year.
Second, according to the different trading objects, it is divided into bills, securities, derivatives, foreign exchange and gold markets.
Bill market refers to the market where all kinds of bills are traded.
The securities market is mainly the market where stocks, bonds, funds and other valuable securities are issued, transferred and circulated.
Derivative market is a market where various derivative financial instruments are traded.
The foreign exchange market refers to the sum of foreign exchange transactions and business activities composed of central banks and foreign exchange banks in various countries.
The gold market refers to a trading center or place specializing in centralized gold trading.
Three, according to the delivery period is divided into spot market and futures market.
Four, according to the nature of the transaction is divided into distribution market and circulation market.
The issuance market, also known as the primary market, is a financial market where companies or government agencies raise funds and sell their newly issued stocks and bonds to initial buyers.
The circulation market, also known as the secondary market, is a market where issued securities are traded, transferred and circulated.
Five, according to the geographical scope is divided into domestic financial markets and international financial markets.
Domestic financial market refers to a country's investment and financing market, which usually involves domestic financial institutions.
International financial market refers to the market for investment and financing transactions between different countries, which is composed of financial institutions that operate currency business between countries.
After listening to my sharing above, are you more clear about the concept of finance and the classification of financial markets?