Accounting Knowledge: What Are The Elements Of Financial Market?

The market for capital providers and fund users to trade through the means of action is, in a broad sense, the market for money lending and financing, dealing with various bills and negotiable securities trading activities.

A complete

(1) capital providers and fund users.

Including government, financial institutions, enterprises and institutions, residents, foreign businessmen and so on, that is, they can provide funds to the financial market, and can also raise funds from the financial market.

This is a basic factor for the formation and development of the financial market.

(2) credit instruments.

This is the object of loan capital pactions in the financial market.

Such as bonds, stocks, negotiable instruments, negotiable certificates of deposit, loan contracts, mortgage contracts, etc., are the targets that must be relied on in the financial market to achieve investment and financing activities.

(3) credit intermediaries.

This refers to some intermediaries who act as the intermediaries of the supply and demand of funds, such as banks, investment companies, stock exchanges, securities dealers and brokers.

From a different perspective, financial markets can be classified as follows:

(1) according to the geographical scope, it can be divided into:

(1) the international financial market consists of financial institutions operating international currency businesses, which include capital lending, foreign exchange trading, securities trading, and capital pactions.

2. Domestic financial market, from domestic

(2) according to the business premises, it can be divided into:

The tangible financial market refers to the financial market with fixed locations and operational facilities.

2. Invisible financial market exists in the form of operation network.

(3) according to the term of financing pactions, they are divided into:

(1) the long term capital market (capital market) mainly provides medium and long-term funds for more than one year, such as the issuance and circulation of stocks and long-term bonds;

2. The short term capital market (money market) is the financing market for short term funds under one year, such as trade lending, bills discounting, short-term bonds and negotiable certificates of deposit.

(4) according to the nature of the paction, it is divided into:

First, issuing the market, also known as the primary market, is the market for new securities issuance.

(2) the circulation market, also known as the primary market, is the market for the securities that have been issued and are in circulation.

(5) it is divided into discount market, discount market, large deposit certificate market, stock market (including stock market and bond market), foreign exchange market, gold market and insurance market according to paction object.

(6) according to the delivery date, it can be divided into:

First, the financial spot market, the financing activities will be paid immediately after delivery.

2. In the financial futures market, the investment and financing activities will be delivered on a specified date according to the contract.

Scientific and systematic division of financial markets in accordance with the above internal links is the basis for effective management of financial markets.

Financial market has many functions for a country's economic development:

(1) financing intermediation.

2. "Regulator" of capital supply and demand.

Third, the lubricant of economic development.