There are main categories of financial markets like stock markets, bond Markets, sukuk, .. Etc
Kindly, could you write what are all other categories of financial markets with the main references which discuss the details of financial markets or something if them
Thanks for your kind consideration
Regards
Ahmed
Hello,
There are many types of Financial markets such as:
- Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof.
- Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading thereof.
- Commodity markets, which facilitate the trading of commodities.
- Money markets, which provide short term debt financing and investment.
- Derivatives markets, which provide instruments for the management of financial risk.
- Futures markets, which provide standardized forward contracts for trading products at some future date; see also forward market.
- Foreign exchange markets, which facilitate the trading of foreign exchange.
- Cryptocurrency market which facilitate the trading of digital assets and financial technologies.
- Inter-bank lending market.
As in the first answer mainly divided to two...For further details of the second post pl ref. https://en.wikipedia.org/wiki/Financial_market
Hello, Ahmed,
maybe, it will be useful for you. It's not exactly about the financial market as an economic mechanism; it implies institutional units engaged in transactions at this market.
Statistical approach to classify financial market's participants is based on the System of National Accounts 2008 (SNA2008).
https://unstats.un.org/unsd/nationalaccount/docs/sna2008.pdf
According to the SNA2008, financial sector as one of five institutional sectors of economy is divided into 9 sub-sectors. It is as follows: 1. Central Bank, 2. Deposit-taking corporations except the Central Bank, 3. Money market funds, 4. Non-MMF investment funds, 5. Other financial intermediaries except insurance corporations and pension funds (ICPF), 6. Financial auxiliaries, 7. Captive financial institutions and money lenders, 8. Insurance corporations (IC), 9. Pension funds (PF)
Also here you can find my paper regarding some concepts related to financial market:
https://www.researchgate.net/publication/323967618_Konceptualizacia_vzaemozv'azku_miz_finansovim_rinkom_rinkom_finansovih_poslug_ta_finansovim_sektorom_Conceptualization_of_the_connection_between_Financial_Market_Market_of_Financial_Services_and_Finan
It was written in Ukrainian, but you can use the Abstract to catch the main sense.
Good luck with your research!
Dear Ahmed,
Please find a document that includes the “Different types of securities that investors routinely buy and sell in financial markets around the world”.
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
First of all I would like to thank you every one and appreciated all your reply / answers may benefit
Raéf Bahrini Thanks for your answer but your information depend on Wikipedia according to D A Gayan Nayanajith and I checked. SO, thanks D A Gayan Nayanajith for your reply. However, I need a scientific papers as references like Ruslana Zadorozhna who support her answer by scientific documents, so thank you so much for your two references, but the second one was by another language where I couldn't understand. However the first one is more useful. So thank you so much Dr. Ruslana Zadorozhna
Finally, thank you Prof. Mazin A. M. Al Janabi for your brief document & I hope if you could support answer by reference/s
Dear Ahmed,
The attached document is part of my class notes in Investments Course.
However, if you need some references, below are some potential ones (Research Papers, Books, and Textbooks):
1. Al Janabi, Mazin A. M., and Arreola Hernandez, Jose, “Forecasting of dependence, market and investment risks of a global index portfolio”. Journal of Forecasting, Vol. 39, No. 3, pp. 512-532, 2020. [Publisher: Wiley-Blackwell].
2. Al Janabi, Mazin A. M., Ferrer, Roman, and Shahzad, Syed Jawad Hussain, “Liquidity-adjusted value-at-risk optimization of a multi-asset portfolio using a vine copula approach”. Physica A: Statistical
3. Al Janabi, Mazin A. M., Grillini, Stefano, Sharma, Abhijit, Ozkan, Aydin, “Pricing of time-varying illiquidity within the Eurozone: Evidence using a Markov switching liquidity-adjusted capital asset pricing model“. International Review of Financial Analysis, Vol. 64, pp. 145-158, 2019. [Publisher: Elsevier, Inc.]
4. Al Janabi, Mazin A. M., “Derivatives Securities in Emerging MENA Markets: Structuring Lessons from other Financial Markets”, Journal of Banking Regulation, Vol. 13, No. 1, pp. 73-85, 2012. [Publisher: Palgrave Macmillan Publishers Ltd.].
5. Al Janabi, Mazin A. M., “Internal Regulations and Procedures for Financial Trading Units”, Journal of Banking Regulation, Vol. 9, No.2, pp. 116-130, 2008. [Publisher: Palgrave Macmillan Publishers Ltd.].
6. Al Janabi, Mazin A. M., “On the Inception of Sound Derivative Products in Emerging Markets: Real-World Observations and Viable Solutions”, Journal of Financial Regulation and Compliance, Vol. 14, No. 2, pp. 151-164, 2006. [Publisher: Emerald Group Publishing Limited].
7. Al Janabi, Mazin A. M., “On the Use of Value-at-Risk for Managing Foreign Exchange Exposure in Large Portfolios”, Journal of Risk Finance, Vol. 8, No. 3, pp. 260-287, 2007. [Publisher: Emerald Group Publishing Limited].
8. Al Janabi, Mazin A. M., “Internal Risk Control Benchmark Setting for Foreign Exchange Exposure: The Case of the Moroccan Dirham”, Journal of Financial Regulation and Compliance, Vol. 14, No. 1, pp. 84-111, 2006. [Publisher: Emerald Group Publishing Limited]
9. Al Janabi, Mazin A. M., “Foreign Exchange Trading Risk Management with Value at Risk: Case Analysis of the Moroccan Market”, Journal of Risk Finance, Vol. 7, No. 3, pp. 273-291, 2006. [Publisher: Emerald Group Publishing Limited].
10. Al Janabi, Mazin A. M., “Optimal Commodity Asset Allocation with a Coherent Market Risk Modeling”, Review of Financial Economics, Vol. 21, No. 3, pp. 131-140, 2012. [Publisher: Elsevier, Inc.]
11. Al Janabi, Mazin A. M., “Optimal and Investable Portfolios: An Empirical Analysis with Scenario Optimization Algorithms under Crisis Market Prospects”, Economic Modelling, Vol. 40, pp. 369-381, 2014. [Publisher: Elsevier, Inc.]
12. Al Janabi, Mazin A. M., Arreola Hernandez, Jose, Berger, Theo, Khuong Nguyen, Duc, “Multivariate Dependence and Portfolio Optimization Algorithms under Illiquid Market Conditions”, European Journal of Operational Research, Vol. 259, No. 3, pp. 1121-1131, 2017. [Publisher: Elsevier, Inc.]
13. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat, Reboredo, Juan Carlos, “Global Financial Crisis and Dependence Risk Analytics of Sector Portfolios: A Vine Copula Approach”, Applied Economics, Vol. 49, No. 25, pp. 2409–2427, 2017.[Publisher: Routledge; Taylor & Francis Group].
14. Al Janabi, Mazin A. M., “Liquidity Risk Management in Emerging and Islamic Markets in Post-Financial Crisis in Gulf Cooperation Council”, in M. Kabir Hassan, University of New Orleans (Ed.), The Edward Elgar Handbook of Empirical Studies on Islam and Economic Life, 2017. [Publisher: Edward Elgar Publishing]
15. Al Janabi, Mazin A. M., “Value at Risk Prediction under Illiquid Market Conditions: A Comparison of Alternative Modeling Strategies”, in Buchanan, Bonnie, Nugyyen, Duc Khuong, and Boubaker, Sabri (Eds.), Risk Management in Emerging Markets: Issues, Framework and Modeling, 2016. [Publisher: Emerald Group Publishing Limited]
16. Al Janabi, Mazin A. M., Khuong Nguyen, Duc, Arreola Hernandez, Jose, Hammoudeh, Shawkat “Time lag dependence, cross-correlation and risk analysis of U.S. energy and non-energy stock portfolios”, Journal of Asset Management, Vol. 16, No. 7, pp. 467-483, 2015. [Publisher: Palgrave Macmillan Publishers Ltd.]
17. Al Janabi, Mazin A. M., “Scenario Optimization Technique for the Assessment of Downside-Risk and Investable Portfolios in Post-Financial Crisis”, Int. J. of Financial Engineering (Formerly, Journal of Financial Engineering), Vol. 2, No. 3, pp. 1550028-1 to 1550028-28, 2015.[Publisher: World Scientific Publishing Co., Inc.]
18. Al Janabi, Mazin A. M., “Tactical Risk Analysis in Emerging Markets in the Wake of the Credit Crunch and Ensuing Sub-prime Financial Crisis”, in Nugyyen, Duc Khuong, Arouri, Mohamed and Boubaker, Sabri (Eds.), Emerging Markets and the Global Economy: A Handbook, pp. 413-446, 2014. [Publisher: Elsevier, Inc.].
19. Al Janabi, Mazin A. M., “Risk Analysis, Reporting and Control of Equity Exposure: Viable Applications to the Mexican Financial Market”, Journal of Derivatives & Hedge Funds, Vol. 13, No. 1, pp. 33-58, 2007. [Publisher: Palgrave Macmillan Publishers Ltd.].
20. Al Janabi, Mazin A. M., “Trading Risk Management: Practical Applications to Emerging-Markets”, in Motamen-Samadian S. (Ed.), Risk Management in Emerging Markets, Palgrave/MacMillan, United Kingdom, pp. 91-136, 2005. [Publisher: Palgrave Macmillan Publishers Ltd.].
21. Al Janabi, Mazin A. M., “Financial Risk Management: Applications to the Moroccan Stock Market”. Consulting/Advisory Book in Financial Trading Risk Management, ISBN: 9954-413-47-2, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2005. [Publisher: AUI University Press].
22. Al Janabi, Mazin A. M., “Formulation of Successful Derivatives Products in Emerging-Markets”. Consulting/Advisory Book in Financial Risk Management, ISBN: 9954-413-30-8, Al Akhawayn University in Ifrane (AUI), Ifrane, Morocco, 2003. [Publisher: AUI University Press].
23. Fundamentals of Investments: Valuation & Management, Jordan & Miller, 5th Edition (2010), McGraw-Hill International Edition.
24. Investments: Analysis and Management Charles P. Jones, (2007), 10th edition, John Wiley and Sons.
25. Benninga, Simon, Financial modeling, 3rd edition, The MIT Press, Cambridge, Massachusetts, 2008.
26. Robert Haugen, Modern Investment Theory, 5th Edition, Prentice Hall, 2001.
27. Alexander, Sharpe, Bailey, Fundamentals of Investments, 3rd Edition, Prentice Hall, 2001.
28. Reilly, Frank, Keith C. Brown, Investment analysis and portfolio management, South-Western College Pub; 10th edition, 2011.
29. Chincarini, Ludwig B., Quantitative Equity Portfolio Management: An Active Approach to Portfolio Construction and Management (McGraw-Hill Library of Investment and Finance), 2006.
30. Zvi. Bodie, Alex Kane, Investments, McGraw-Hill Education; 10th edition, 2013.
31. Burton, G., Malkiel, A Random Walk Down Wall Street, W. Norton & Company; 9 edition, 2007.
32. Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, William N. Goetzmann, Modern portfolio theory and investment analysis, 9th edition. Wiley, 2014.
33. Saunders A. and Cornett M., Financial Markets and Institutions (The Mcgraw-Hill / Irwin Series in Finance, Insurance and Real Estate) 6th Edition, 2014.
34. Jacque, Management and Control of Foreign Exchange Risk, Kluwer Academic Publishers, 1996.
35. Giddy, Global Financial Markets, D.C. Heath, 1994.
36. Dufey and Giddy, The International Money Market, Prentace Hall, 2nd edition, 1994.
37. Brealey, Myers and Marcus, Fundamentals of Corporate Finance, McGraw-Hill.
38. Brealey and Myers, Principles of Corporate Finance, McGraw-Hill.
39. Ross, Westerfield and Jordan, Essentials of Corporate Finance, McGraw-Hill.
40. Chambers, Lacey, Modern Corporate Finance, Theory and Practice, Pearson Education, Addison Wesley.
41. Rao, Financial Management: Concepts and Applications, South-Western College Publishing.
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
EGADE Business School, Tecnologico de Monterrey,
Santa Fe Campus, Mexico City, Mexico.
Dear Ahmed S. Wafi ,
hmmm, your question is kind of vague....
Financial markets can generally be divided into TWO categories (by term or length of the 'life' of the financial market instrument and by where the instrument is being traded)
by length of 'life' of securities you have:
Money Market - short term securities
Capital Market - long term securities
by where the instrument is being traded:
Primary market - where securities are traded for the FIRST day and first day only
Secondary market - where securities are traded after they have been introduced by primary market
There is also an OTC (over the counter market), there is a 'delisted' market etc.
I hope my answer helps,
regards
You can use this for empirical review of financial markets:
Allen, A., Otchere, I. and Sebbet, L. (2011). African Financial Systems: A Review, Review of Development Finance 1 pp.79–113.
Hi,
As a researcher, there is only one market and the products are selected by the risk / return combination.
As a practitioner, lawyer or academic..., there are many markets as much as types of products
Ahmed S. Wafi Financial market could be categorized according to investors or instruments that trading in it. For example, Capital vs money markets or spot vs future markets and so on...
for more info. you can visit this website.
https://www.tradingpedia.com/forex-academy/types-of-financial-markets
Financial markets are divided into money and capital markets according to the dominant classification formula. The criterion for division is the period of 1 year of operation of financial instruments and their functionality, i.e. division into financial instruments, thanks to which certain business entities under external financing meet their needs to cover the short-term liquidity gap related to the need to maintain business continuity in a specific formula (financial instruments) operating on money markets) or to finance a specific investment process (financial instruments operating on capital markets). Then, in terms of specific additional criteria of division, financial markets are divided into further segments of the money and capital markets. On the other hand, the categorization of markets according to specific criteria of the level of materiality and according to certain factors recognized as key by a specific financial or other institution is carried out by specific specific entities operating on financial markets, including commercial banks, investment banks, investment funds, rating agencies, supervisory institutions over financial systems etc.
Greetings,
Dariusz Prokopowicz
Below are the 4 main Financial Markets.
1. Stock market
2. Derivatives market
3. Bond market
4. Commodities market
In addition, 04 major categories of securities are Cash, Bonds, Stocks and Mutual funds.
The main categories are:
1. Capital Markets- long term financial instruments
2. Money markets-short term financial instruments.
Ahmed S. Wafi Shujan Suntharalingam Mohammed Faez Hasan
Financial markets - market dealing in financial assets- can be classified by short-term and long term. Another classification by the type of financial assets - money market, commodity (gold and oil) market, stock market, IPO market, bond market, derivatives market, bills (Treasury and commercial), swap, options, futures, forwards, sub-prime and also property market.
Dear Ahmed,
There are more than of classification to Financial Markets but most of these can be as the following:
- Money Market: to trade the short term securities like (T-Bill, Note bill, commercial paper, CDs, Banking Acceptances, Federal Funds, ...etc )
- Capital Market: to trade the long term securities like (Stocks, Bonds, Mortgage bonds, ..)
- Derivatives Markets: it contains ( Options, Futures, Swaps) contracts.
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