Transfer of resources and assets to expand your earnings can be achieved by investing in the financial market. The financial market helps an investor to invest his savings and make a good profit out of it. The financial markets, contribute to the economy of a nation to the extent that the latter depends on the rates of savings and investment.
The financial markets have two major components:
1. Money market
2. Capital market
In the Money market, the borrowers and lenders exchange short-term funds to solve their liquidity needs. Money market instruments are generally financial claims that have low risk, by default, an investment held for longer than a year, have good market values.
Direct or indirect claims to capital can be called in the capital market. It has a larger scope than the Securities Market and accepts all modes of lending and borrowing, whether or not evidenced by the creation of a negotiable financial instrument. The market consist of the complex mechanisms through which intermediate-term funds and long-term securities are pooled and made present to business, government, and other individuals.
It is highly recommended by commodity trading tips analysts, to know about the market before investing anywhere
The financial instruments which are commonly and readily transferable by sale belong to the Security Markets. The Securities Market has two interdependent segments, the primary market, and secondary market. MCX free tips help you add more capital to your savings with this market.
The Primary market provides the medium for sale of new bonds, securities etc. To raise the funds for investment or to discharge some obligation, the issuer of securities sells the securities in the primary market.
The Secondary market deals in securities which are issues previously. The secondary market makes sure those who hold assets to manage their holdings in response to the variations in their assessment of risk and return. They also sell securities for cash to meet their liquidity needs.