Securities market
Corporate securities and government securities constitute important investment avenues for savers . thesevare tradde in the #securities market . Creation of a portfolio and periodic revision of the portfolio involves buying and selling of securities in the securities market. An understanding of the working securities market is , therefore ,essential forpractising portfolis management .however ,the functioning of the securities market is too vast a subject to be confined within a single chapter .an attemp is ,made this chapter to explain the basic features of securities market .
FINANCIAL MARKET
A market is a place used for #buying and #selling goods. This is the commonest meaning of the word ‘market’. The usual features of a market are a place ,some buyers, some sellers, some commodity to be exchanged for money or some other commodity.What transpires in a market is an exchange of a commodity between a buyer and a seller.However,such an exchange can take pleace even without a common meeting pleace or physical space hence a physical place is not an essential constituent of a market. It is rather the, #mechanism used for the exchange pf goods.
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In an ordinary market what is usually exchange is a physical comodity such as fruits grains, etc . In Modern day markets, these commodities are valued in monetary terms and exchange for money . A commodity that is in demandd is exchange between buyers and sellers in the market.
In an economy, the various economic units such as individuals in the household sector, business units in the industrial and commercial sector,and government organisations and departments in the government sector are engaged in various economic activities and #transactions involving money. Some of themspend more money than they earn and end up in financial deficit while others earn moremoney than they spend,thus ending up in financial surplus. The deficit generators are usually the units in the industrial,commercial and government sector.the surplus generators are mostly the units in the household sector .The deficit generators whoare known ass ultimate borrowers world like to borrow funds from the surplus generators who are thhe primary lenders.Such transfer of funds is possible and als necessary to sustain the development of the economy