CONCEPT & MEANING:

  • Financial Markets: Concept, Functions, and types After going through this unit, the student/ learner would be able to:
    • Understand the concept of the financial market.
    • Understand the capital market and money market as types of financial markets.
  • The money market and its instruments understand the concept of the money market.
    • Describe the various money market instruments.
    • Differentiate between capital market and money market
  • Capital market and its types (primary and secondary) discuss the concept of the capital market.
    • Explain primary and secondary markets as types of capital markets. Discuss the methods of floating new issues in the primary market.
    • Distinguish between primary and secondary markets.
  • Stock Exchange- Functions and trading procedures give the meaning of a stock exchange.
    • Explain the functions of a stock exchange.
    • Discuss the trading procedure in a stock exchange.
  • Securities and Exchange Board of India (SEBI) - objectives and functions
  • Give the meaning of depository services and demat account as used in the trading procedure of securities.
    • State the objectives of SEBI.
    • Explain the functions of SEBI.

Financial Intermediation = process of allocating funds from saving surplus units (E.g. households) to saving deficit units (e.g. industries, government, etc). Alternatives = Banks or Financial markets.