description of instruments, structure and types of global financial market.

1. Presented by:-
Meenakshi Chhangani

2.  Broad term describing any
marketplace where buyers and
sellers participate in the trade of
assets such as equities,
bonds, currencies and derivative
s.
 Financial markets are typically
defined by having transparent
pricing, basic regulations on
trading, costs and fees and
market forces determining the
prices of securities that trade.

3. 1) Mobilisation of Savings and their Channelization into
more Productive Uses:
Financial market gives impetus to the savings of the people.
This market takes the uselessly lying finance in the form of
cash to places where it is really needed.

4.  Facilitates Price Discovery:
The price of any goods or services is
determined by the forces of demand and
supply. Like goods and services, the
investors also try to discover the price of
their securities.The financial market is
helpful to the investors in giving them
proper price.

5. (3) Provides Liquidity to Financial Assets:
 It means that the investors can invest their money,
whenever they desire, in securities through the medium of
financial market.
 They can also convert their investment into money
whenever they so desire.

6.  (4) Reduces the Cost ofTransactions:
The financial market makes available every
type of information without spending any
money. In this way, the financial market
reduces the cost of transactions.

7.  Free flow of international capital
 High market power at home
 Flexibility in financing both current account deficit and
recycling current account surplus
 rapid spreading of technology advancement in mode of
payments.
 Increased methods of measuring market risk exposures.

8.  Facilitates smooth consumption by borrowing or diversifying
abroad
 Broad ownership also increases issuer’s products
 There is a brokers and dealers benefit as they can broader
their product line
 Large scope of business and ownership all over the globe

10.  Risk in electronic trading as it includes chances of forgery
 Coordination problems between principal and agent
 Explanation of the monetary policy can be misunderstood
 Risk in structural changes in economic environment due to
monetary policies all over the world

11.  Financial systems risks and advances
 Hedge fund industry
 Strengthening market and institutional resilience
 Sovereign wealth funds

12.  Continued growth of global
financial assets
 Depth of financial markets
 Regulation of International
Securities Market
 Raise in the level of foreign
investment

14. International money market
Global financial market
Global foreign
exchange market
International
capital market

15.  The market in which participants from
around the world are able to buy, sell,
exchange and speculate on different
currencies. International currency
markets are made up of banks, commercial
companies, central banks, investment
management firms, hedge funds, retail forex
brokers and investors.

16. (i) Existence of Central Bank,
(ii) Highly organized commercial Banking System
(iii) Existence of sub-markets
(iv) Healthy competition in sub-markets
(v) Integrated structure of money market
(vi) Availability of proper credit instruments.
(vii) Adequacy and Elasticity of funds
(viii) International attraction
(ix) Uniformity of interest rates
(x) Stability of prices and
(xi) Highly developed Industrial system

17. Instruments
1.
• Eurocurrency
2.
• Euro credits
3.
• Euro certificate of deposits
4.
• Banker’s acceptance
5.
• Floating rate notes
6.
• Euro commercial papers

18.  Capital markets are markets for buying and
selling equity and debt instruments.
 Capital markets channel savings and investment between
suppliers of capital such as retail investors and institutional
investors, and users of capital like businesses, government
and individual.
 Consists of primary and secondary market.

19. International capital
market
International equity
market
International bond
market
Euro currency
market
Euro credit
market
Foreign bond
market
Eurobond market

20. EQUITY
 American depository
receipts [ADR]
 Global depository receipts
[GDR]
BOND
 International bank loans
 Euro notes market
 Euro bonds