Types of financial markets

The financial markets can be divided into different subtypes:

• • Stock markets, which provide financing through the issuance of shares and enable the subsequent trading thereof.
  • Bond markets, which provide financing through the issuance and enable the subsequent trading thereof.
• Commodity markets, which facilitate the trading of commodities.
• Money markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management financial risk.
• Futures markets, which provide standardized for trading products at some future date; se
• Insurance markets, which facilitate the redistribution of various risks.
• Foreign exchange markets, which facilitate the trading of foreign exchange.

The consist of Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities.

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