We just finished five classifications of capital markets, so why not the financial markets as well?. Here is a list of the seven different classifications you'll find in the financial markets.
1) Debt vs. Equity Markets
- Legal obligation vs.
- Ownership position in the business
2) Primary vs. Secondary
- New issues vs.
- Previously issued securities
3) Auction vs. OTC (Over the Center)
- Stock exchanges vs.
- Dealer markets
4) Money Market vs. Capital Markets
- Maturities of 3 years or less (usually 1 year or less) vs. (debt securities, are traded. eg. treasury bills)
- Longer maturities or no fixed maturities (common stocks) or
- Equity securities (warrants, options, etc.)
5) Intermediated vs. Non-Intermediated
- Direct securities (eg. bonds issued by a corporation) vs.
- Indirect securities (financial intermediary accepts deposits and loans out funds)
6) Cash/Spot vs. Futures
- Immediate vs. future settlement
7) Regulated vs. Unregulated/Exempt
- Stock exchanges vs. private placements
Anymore that I've missed?
[tags]financial markets, spot futures, cash futures, money market, capital market[/tags]