Major Players in the Financial

Markets

Supervised by:
Mr. Sumon Das
Department of Management
University of Dhaka

Submitted By
MD. SHAIFUL HAQUE KHAN
ID: 3-14-27-076

Date of Submission
April 09, 2016

FINANCIAL MARKET:
Any marketplace where buyers and sellers participate in
the trade of financial securities, commodities, and other
fungible items of value at low transaction costs and at
prices that reflect supply and demand. Securities include
stocks and bonds, and commodities include precious
metals or agricultural goods.

Capital Market
Capital Market is a market where a government or a
company can raise money or capital to fund their
operations and long term investment. It acts as a bridge
between the investors and the companies/government.
Capital Markets consists of Primary and Secondary
Markets. Primary Markets is used to raise fresh capital
where secondary market is used to trade on securities
and bonds. Capital Market can also be divided into Bonds
Market & Stock Market.
Commodity Markets
Commodity Markets are basically those markets where
commodities are bought and sold or exchanged, Main
commodities include Crude Oil, Gold, Silver, Sugar etc.
The market is governed by regulated Commodities
Exchange.
Money Markets
Money Markets facilitate short-term lending and
borrowing. It offers a good alternative for high risk-based
lending. Common Money Market instruments include:
Banker's Acceptance, Certificate of Deposit, Commercial
papers, Money Market Mutual Funds, Treasury Bills,
Foreign Exchange Swaps and other such instruments.
Derivative Market

Derivative Market facilitates trading in different

derivatives. There are different types of derivatives
available like Futures, Options and Swaps. All the
derivatives trading are regulated by specialized
derivative exchanges.
Insurance Market
Insurance has been used successfully to transfer the risk
from one party to another one. The Insurance market acts
as a medium between between the insured and the
insurers and facilitates all kind of insurance related
transactions.
Foreign Exchange Market
Foreign Exchange Markets facilitate trading in different
currencies which also helps in cross-border transactions.
It also helps to decide the current currency exchange rate
between different currencies based on demand and
supply mechanism.

There are three principal sets of players that

interact within the financial markets:
1. Borrowers: Individuals and businesses that need
money to finance their purchases or investments.

2. Savers (Investors): Those who have money to

invest. These are principally individuals although firms
also save when they have excess cash.
3. Financial Institutions (Intermediaries):
The financial institutions and markets help bring
borrowers and savers together.