1. Types of Financial Markets.

2. Function of the Financial Markets.

3. Structure of the Financial Markets.

4. To compare the functions of dealers and brokers.

5. What are the main functions of NASDAQ?

6. Function of Money Markets.

7. Function of Capital Markets.

8. The Interbank Market.

9. Treasury bills.

10. Bills of Exchange.

11. What does it mean «Bond»?

12. The primary and secondary market.

13. The pricing of equities.

14. Introduction to Forward Contracts.

15. The Value of Forward Contract and Its Implications.

16. Types of Futures contracts.

17. London International Financial Futures and Options Exchange – is a one of the centers of futures trading.

18. Types of Options contracts.

19. Interest rate options.

20. Option strategies.

21. An interest rate swap.

22. The characteristics of the Eurodollar market.

23. Typical features of a Eurobond.

24. Сommercial banks.

25. Savings and loan associations.

26. Credit unions.

27. Mutual savings banks.

28. Life insurance companies.

29. Pension funds.

30. Government retirement funds.

1. Types of Financial Markets.

A market is a venue where goods and services are exchanged. A financial market is a place where individuals and organizations wanting to borrow funds are brought together with those having a surplus of funds.

There different ways to classify financial markets. They are classified according to the financial instruments they are trading, features of services they provide, trading procedures, key market participants, as well as the origin of the markets.

From the perspective of country origin, its financial market can be broken down into an internal market and an external market.

The internal market, also called the national market, consists of two parts: the domestic market and the foreign market. The domestic market is where issuers domiciled in the country issue securities and where those securities are subsequently traded. The foreign market is where securities are sold and traded outside the country of issuers.

The external market is also referred to as the international market, offshore market, and the Euromarket (despite the fact that this market is not limited to Europe).

Money market is the sector of the financial market that includes financial instruments that have a maturity or redemption date that is one year or less at the time of issuance.

The capital market is the sector of the financial market where long-term financial instruments issued by corporations and governments trade. There are two types of capital market securities: those that represent shares of ownership interest, also called equity, issued by corporations, and those that represent indebtedness, or debt issued by corporations and by the state and local governments.

Financial markets can be classified in terms of cash market and derivative markets. The cash market, also referred to as the spot market, is the market for the immediate purchase and sale of a financial instrument.

In contrast, some financial instruments are contracts that specify that the contract holder has either the obligation or the choice to buy or sell another something at or by some future date. The “something” that is the subject of the contract is called the underlying (asset). The underlying asset is a stock, a bond, a financial index, an interest rate, a currency, or a commodity. Because the price of such contracts derive their value from the value of the underlying assets, these contracts are called derivative instruments and the market where they are traded is called the derivatives market.

When a financial instrument is first issued, it is sold in the primary market. A secondary market is such in which financial instruments are resold among investors. No new capital is raised by the issuer of the security. Trading takes place among investors.

Secondary markets are also classified in terms of organized stock exchanges and over-the-counter (OTC) markets.

Stock exchanges are central trading locations where financial instruments are traded. In contrast, an OTC market is generally where unlisted financial instruments are traded.