Currency Financial Market

Tuesday, July 13, 2010

The financial market is a market mechanism that allows for one or koporasi to easily get their sales and purchases in the form of financial securities (such as stocks and bonds), commodities in the securities it is possible to make a purchase and sale of products early on natural resources such as product Mining and agriculture and so forth.

In the world of finance, financial markets include:
The seller of shares in the capital through the capital market;
The transfer of risk in the derivatives market transactions; and
International trade through foreign exchange market.

The financial markets may mean:
A market system that facilitates trade between the occurrence of financial products and derivatives such as stock exchanges which facilitate trading in shares, bonds and warrants.

Meetings between buyers and sellers to trade financial products in a variety of ways including the use of stock exchanges, directly between sellers and buyers (over-the-counter).

In the academic world, students study the field of finance will use both meanings but students of economics are only using the second meaning.
Types
Capital market consists of the primary market and secondary market that was divided into:

The stock market, which is a means of financing through the issuance of shares, and is a means of trading shares.

The bond market, which is a means of financing through the issuance of bonds and bond trading is a tool.

Commodity markets, which facilitate the trading of commodities.
Financial markets, which is a tool of short-term debt financing and investment.

Derivatives market, which is a tool that provides instruments to manage financial risk.

Futures market, which is a tool that provides stadarisasi futures contracts for trading products at some future date.

Insurance market, which facilitate the redistribution of various risks.

foreign exchange markets, which facilitate foreign currency trades.

Benefits of financial markets
Without the financial markets is the borrower of money (creditors) will have difficulty in finding debtors who are willing to lend to him. Intermediary such as a bank to help in this process, which the bank accepts deposits from customers who have the money to be saved and then the bank can lend money to someone who intends to borrow money. Banks typically lend money in the form of loans and mortgages.

Capital Markets
Capital markets is an activity related to public offering and trading of securities, public companies relating to the issuance of securities, as well as institutions and professionals associated with the effects. Capital Markets provides a variety of alternatives for investors than other investment alternatives, such as: saving money in banks, buy gold, insurance, land and buildings, and so forth. Capital Markets acting as a mediator. Capital Markets acting as a liaison between the investors with companies or government institutions through trade through long-term instruments such as bonds, stocks, and others. Ongoing capital markets function (Bruce Lliyd, 1976), is improving and linking the long-term financial flows to the "market criteria" that will efficiently support real growth in the overall economy.

Capital Market Structure
Structure of Capital Markets in Indonesia are at the highest pointed Bapepam Finance minister is a government institution that served to make the guidance, regulation and supervision of capital market everyday with the goal of capital market activities aimed at creating an orderly, fair, efficient and protects the interests of public investors

Capital Markets
Capital markets are an efficient vehicle for allocating funds. Investors can invest in several companies through the purchase of new effects which are offered or traded on the Capital Market. Conversely, companies can acquire the funds needed to offer long-term financial instruments through the Capital Market.

Capital Market as an alternative investment
Capital markets facilitate investment by providing alternative profit with a number of specific risks

Improvement of national economic activity
In the presence of the Capital Market, the company - the company will be easier to get funds, so that will push the national economy becomes more developed, which will create vast employment opportunities, and increase taxes for the government
Benefits of Capital Market
amount of funds that can be collected a large amount

these funds can be received at the time the complete primary market
there is no "convenant" so that management can more freely in fund management / enterprise

high corporate solvency so as to improve corporate image

dependence on bank issuers becomes smaller

source text is taken from some of the information I can from the research and info from some friends and companions, I hope this basis is useful for me and you all

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