financial market

Financial market refers to the places where monetary funds are borrowed, foreign exchange is traded, securities are traded, bonds and stocks are issued, and precious metals such as gold are traded. Direct financial market and indirect financial market together constitute the whole financial market.

Financial markets can be classified from different angles: according to the financing period, they can be divided into short-term financial markets and long-term financial markets.

Short-term financial market, also known as money market, includes bill discount market, short-term deposit and loan market, short-term bond market and interbank lending market. Long-term financial market is also called capital market, including long-term loan market and securities market. According to the transaction object, it can be divided into local currency market (including money market and capital market), foreign exchange market, gold market and securities market.

2. Securities market

Securities are all kinds of economic rights and interests certificates. Therefore, the securities market in a broad sense refers to all places where securities are issued and traded. In a narrow sense, the most active securities market refers to capital security market, currency securities market and commodity securities market. It is a place where stocks, bonds, commodity futures, stock futures, options, interest rate futures and other securities products are issued and traded.

The securities market is the product of the development of market economy to a certain stage, and it is a market to solve the contradiction between capital supply and demand and liquidity. The securities market realizes the connection between financing and investment by issuing and trading securities, which effectively solves the contradiction between supply and demand of funds and the adjustment of capital structure.

In the developed market economy, the securities market is an important part of a complete market system, which not only reflects and regulates the movement of monetary funds, but also has an important impact on the operation of the whole economy.

Extended data

I. Characteristics of financial markets:

1. The financial market is a market with funds as the transaction object.

2. The trading relationship in the financial market is not a simple buying and selling relationship, but a lending relationship, which embodies the principle of separation of ownership and use right of funds.

3. Financial market can be tangible or intangible.

Second, the characteristics of the securities market

1. The securities market is a place for direct exchange of values. Portfolio is the direct representative of value, and its essence is only the direct expression of value. Although the objects of securities trading are all kinds of securities, because they are the direct expression of value, the securities market is essentially a direct exchange place of value.

2. The securities market is a place where property rights are directly traded. The trading objects of the securities market are securities such as stocks, bonds and investment fund coupons, which are only representatives of a certain number of property rights, so they represent the ownership or creditor's rights of a certain number of property and related income rights. In fact, the securities market is a direct trading place for property rights.

3. The stock market is a place where risks are directly exchanged. Securities is not only the representative of a certain income right, but also the representative of a certain risk. Securities trading not only transfers certain income rights, but also transfers the unique risks of securities. Therefore, from the perspective of risk, the securities market is also a place for direct exchange of risks.

References:

Financial Market-Baidu Encyclopedia Securities Market-Baidu Encyclopedia