Can Anybody Clarifies The Financial Markets?

Financial Markets

1. Capital Markets:
These are the markets for the long term debt & corporate stocks.
i. Stock Exchange
A stock exchange is a place where the listed shares, Term finance certificates (TFC) and national investment trust units (NIT) are exchanged and traded between buyers and sellers.
ii. Long term bonds
Long term government & corporate bonds are also traded in capital markets.
2. Money Markets
Money market generally is a market where there is buying and selling of short term liquid debt instruments. (Short term means one year or less). Liquid means something which is easily en cashable; an instrument that can be easily exchanged for cash. Following financial instruments are traded in money markets. Short term Bonds
(i). Government of Pakistan: Federal Investment Bonds (FIB), Treasury-Bills (T-Bills)
(ii).Private Sector: Corporate Bonds, Debentures Call Money, Inter-bank short-term and overnight lending & borrowing Loans, Leases, Insurance policies, Certificate of Deposits (CD's) Badlah (money lending against shares), Road-side money lenders
3. Real Assets or Physical Asset Markets
Following are the active markets of real and physical assets in Pakistan
i. Cotton Exchange, Gold Market, Kapra Market
ii. Property (land, house, apartment, warehouse)
iii. Computer hardware, Used Cars, Wheat, Sugar, Vegetables, etc.