Financial markets and institutions Essay Example | Topics and Well Written Essays - 1500 words

monetary trades and institutions - Essay ExampleAny commodity market might be considered to be pecuniary market if traders intention is not the speedy consumption of the commodity but as a means of delaying or accelerating consumption over time. Markets piece of work by placing many interested sellers in one place, thus making them easier to find for potential buyers. An miserliness which relies primarily on connections between buyers and sellers to allot capital is known as a market economy. Financial markets are affected by forces of supply and demand, and allot capital over time through a price device such as the interest rate. Financial market could mean organizations that facilitate the motion in monetary products, (for example, Stock deputizes facilitate the trade in stocks, bonds and warrants) and the coming together of buyers and sellers to trade financial products such as stocks and shares including the use of stock exchanges directly between buyers and sellers.There are different types of financial markets capital market which provide finance through issuance of shares and bonds, commodity market which facilitate the concern of commodities, money market which arrange short term debt financing and investment, derivatives markets that provide instruments for the management of financial risk, insurance policy markets, which facilitate to cover of various risks and foreign exchange market which facilitate the trading of foreign exchange (Wikipedia, 2006).When looking at a financial institution it might seem to be a intermediator between investors and customers. A financial institution might be considered as an agent that provides financial work for its customers. Financial institutions generally fall under financial rule from a government authority. The types of financial institutions allow banks, building societies, credit unions, stock brokerages, and similar businesses. Financial institutions give service