Types of Financial Markets

• Primary Markets 


  Where financial instruments are sold for the first time to raise capital. The money received from investors goes directly to the government or business
• Secondary Markets

  When financial instruments are resold. They determine the market price of securities traded through interaction of demand and supply.
• Share Market


  Where ownership shares in companies are issued or exchanged
• Debt Market


  Where debt securities are exchanged or where cash is lent or borrowed
• Securities


  A certificate or other financial instrument with monetary value can be traded—stocks, bonds, etc.
• Derivatives Market


  Where people buy and sell financial assets based on the value of other financial markets
• Foreign Exchange Markets


  Where financial assets one's country's currency are exchanged for assets in another country's currency
• Consumer Credit Market


  Allows consumers to purchase consumer goods and services in advance of actual payment and repay with interest later - credit cards and personal loans
• Housing Loans


  An amount of money lent to an individual by a financial institution to finance the purchase of a property.
• Business Loans


  A financial arrangement where a lender provides funds to a business entity with interest rates and repayment terms. They are intended to support the needs, expansion, etc of a business.
• Short-term Money Market


  Banks are buyers and sellers of money for short-term loans. The duration of the loan may be up to a year.
• Bond Market


  Longer-term securities where lenders receive regular fixed payments from the issuing institution and receive the coupon payment at maturity
• Financial Futures


  Contracts to trade in financial instruments later for a certain price. Allows investors to ensure against adverse movements in interest rates or share prices by agreeing to sell or buy the product even though they do not have to make the transaction till a later date
• Domestic Markets

  International financial markets offer Australians the opportunity to invest and earn returns from businesses overseas. Integration with global financial markets will mean regular disturbances in markets overseas are more quickly transmitted to Australia
• Global Markets

  Allow Australian's access to foreign capital to invest in houses and businesses. Without access to international finance, Australian's would face higher borrowing costs or might not be able to access finance