Financial market

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A financial market is a market in which people trade financial securities and derivatives at low transaction costs.wikipedia
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Bond market

credit marketcredit marketsdebt market
Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on a stock exchange, and people are building electronic systems for these as well, to stock exchanges.
The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

Capital market

capital marketssecurities marketsecurities markets
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.

Market (economics)

marketmarketsmarket forces
A financial market is a market in which people trade financial securities and derivatives at low transaction costs.

Secondary market

aftermarketsecondary tradingmarket for resale
The secondary market, also called the aftermarket and follow on public offering is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

Derivatives market

derivativesderivative marketderivatives markets
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets.

Money market

short-term debtmoney market tradingmoney
When companies have surplus cash that is not needed for a short period of time, they may seek to make money from their cash surplus by lending it via short term markets called money markets.
As money became a commodity, the money market became a component of the financial market for assets involved in short-term borrowing, lending, buying and selling with original maturities of one year or less.

Spot market

spotspot conversionscash market
The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery.

Forward market

The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into.

Financial intermediary

financial intermediariesfinancial intermediationintermediaries
Alternatively, they may lend the money directly via the financial markets, and eliminate the financial intermediary, which is known as financial disintermediation.

Security (finance)

securitiessecuritydebt securities
A financial market is a market in which people trade financial securities and derivatives at low transaction costs.


A financial market is a market in which people trade financial securities and derivatives at low transaction costs.


It centres on managing risk in the context of the financial markets, and the resultant economic and financial models.

Market trend

bear marketbull marketmarket trends
One of the tenets of "technical analysis" is that market trends give an indication of the future, at least in the short term.
A market trend is a perceived tendency of financial markets to move in a particular direction over time.

Technical analysis

Technical analysis softwaretechnicaltechnical analyst
This is the basis of the so-called technical analysis method of attempting to predict future changes.
The principles of technical analysis are derived from hundreds of years of financial market data.


Bankingbankerbanking system
Intermediaries such as banks, Investment Banks, and Boutique Investment Banks can help in this process.
As a reaction, banks have developed their activities in financial instruments, through financial market operations such as brokerage and have become big players in such activities.

Benoit Mandelbrot

Benoît MandelbrotMandelbrotBenoît B. Mandelbrot
It was discovered by Benoit Mandelbrot that changes in prices do not follow a normal distribution, but are rather modeled better by Lévy stable distributions.
Mandelbrot saw financial markets as an example of "wild randomness", characterized by concentration and long range dependence.

Brownian model of financial markets

Brownian-motion models
The Brownian motion models for financial markets are based on the work of Robert C. Merton and Paul A. Samuelson, as extensions to the one-period market models of Harold Markowitz and William F. Sharpe, and are concerned with defining the concepts of financial assets and markets, portfolios, gains and wealth in terms of continuous-time stochastic processes.

Financial market efficiency

efficiencymarket efficiencywell developed market
There are several concepts of efficiency for a financial market.

Mathematical finance

financial mathematicsquantitative financequantitative trading
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets.

Quantitative behavioral finance

The prevalent theory of financial markets during the second half of the 20th century has been the efficient market hypothesis (EMH) which states that all public information is incorporated into asset prices.

Transaction cost

transaction coststransaction cost economicsTransaction cost theory
A financial market is a market in which people trade financial securities and derivatives at low transaction costs.


Securities include stocks and bonds, and precious metals.

Bond (finance)

bondsbondbond issue
Securities include stocks and bonds, and precious metals.

Stock exchange

stock exchangesexchangebourse
The term "market" is sometimes used for what are more strictly exchanges, organizations that facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange.