What Are the Different Types of Financial Markets?

For the last nine years, Craig Stocksleger has overseen executive search operations as owner of Comprehensive Recruiting in Tempe, Arizona. In this capacity, Craig Stocksleger specializes in analysis and trading within the various financial markets.

There are a number of financial markets across the globe. These meeting points are convenient for both buyers and sellers, allowing them to exchange funds in the form of bonds, money, and equities. Though a transparent means of trading, financial markets can fluctuate due to changes in gross domestic product and the unemployment rate. Nonetheless, financial markets are crucial to establishing economic liquidity and capital formation, which help facilitate successful businesses. The following lists just a few different types of financial markets:

Capital market
In a capital market, businesses and individuals will exchange or sell securities to raise their financing and net worth. These markets feature both primary and secondary markets. Stock and bond markets, two sub-types of the capital market, allow investors to purchase publicly traded material.

Money market
This market allows individuals to trade financial assets with brief maturity and large liquidity rates as a means of short-term leasing. Within money markets, investors utilize certificates of deposit, interest rate swaps, and commercial paper to safely and efficiently exchange capital.

Foreign exchange market
A foreign exchange market allows individuals to securely trade worldwide currencies. In addition, the market employs the use of financial policies to regulate worldwide exchange rates on money and prevent high fluctuation within different markets.


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