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Financial Management: Define The Following

This document defines key financial market terms. It explains that a market is where buyers and sellers exchange goods and services. There are various types of markets, including physical markets, virtual markets, auction markets, and financial markets. The primary market is where new stocks and bonds are first sold publicly. The secondary market is where existing securities are traded. The money market involves very short-term debt investments. The capital market includes trading of both short-term debt and long-term debt. The third market consists of exchange-listed stocks traded over-the-counter between broker-dealers and institutions. The fourth market allows direct trading between institutions without a recognized exchange.

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Fahad Tihami
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62 views2 pages

Financial Management: Define The Following

This document defines key financial market terms. It explains that a market is where buyers and sellers exchange goods and services. There are various types of markets, including physical markets, virtual markets, auction markets, and financial markets. The primary market is where new stocks and bonds are first sold publicly. The secondary market is where existing securities are traded. The money market involves very short-term debt investments. The capital market includes trading of both short-term debt and long-term debt. The third market consists of exchange-listed stocks traded over-the-counter between broker-dealers and institutions. The fourth market allows direct trading between institutions without a recognized exchange.

Uploaded by

Fahad Tihami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Financial Management

Instructor: Sir. QASIM


Assignment: 1
Degree: Msc. hrm
Semester: 2nd

DEFINE THE FOLLOWING:

 MARKET:
A market is a place where buyers and sellers can meet to facilitate the exchange or
transaction of goods and services.

 TYPES OF MARKETS: 
There are several types of markets. Few are as follow:
 Physical Markets
 Non Physical Markets/Virtual markets
 Auction Market
 Market for Intermediate Goods,
 Black Market
 Knowledge Market 
 Financial Market 

 PRIMARY MARKET:
The primary market is where securities are created. It's in this market that firms sell
(float) new stocks and bonds to the public for the first time. An initial public offering, or IPO,
is an example of a primary market

 SECONDARY MARKET:
The secondary market is where investors buy and sell securities they already own. It is
what most people typically think of as the "stock market," though stocks are also sold on the
primary market when they are first issued.

 MONEY MARKET:
The money market refers to trading in very short-term debt investments. At the
wholesale level, it involves large-volume trades between institutions and traders. At the retail
level, it includes money market mutual funds bought by individual investors and money
market accounts opened by bank customers.

M. Fahad Ayub Page 1


Financial Management

 CAPITAL MARKET:
The money market refers to trading in very short-term debt investments. At the
wholesale level, it involves large-volume trades between institutions and traders. At the retail
level, it includes money market mutual funds bought by individual investors and money
market accounts opened by bank customers.

 Third Market:
A Third market consists of trading conducted by non-exchange member broker-dealers
and institutional investors of exchange-listed stocks.
In other words, the third market involves exchange-listed securities that are being traded
over-the-counter between broker-dealers and large institutional investors

 Fourth Market:
The Fourth market refers to a market where securities trade directly between
institutions on a private, over-the-counter (OTC) computer network, rather than over a
recognized exchange such as the New York Stock Exchange (NYSE) or National Association for
securities dealers Automated Quatations (NASDAQ).

M. Fahad Ayub Page 2

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