What are the basic elements of financial markets?

The basic elements of financial markets are divided into the following four parts:

1. Participants in the financial market: ** sector, which raises funds through the issuance of bonds. Industrial and commercial enterprises are fundraisers or funders.

Financial institutions are the most important participants in the financial market. There are mainly depository financial institutions, non-depository financial institutions, and ** banks. Personal:

It is the capital of the market.

2. Financial instruments: It is a written document that is generated in credit activities and can prove the amount, term and quality of financial transactions.

3. The organizational form of the financial market: refers to the way in which financial transactions are conducted.

4. Management of the financial market: refers to the management carried out by the first bank and the relevant regulatory authorities to maintain the normal order of the financial market.

A well-developed financial market should consist of three basic elements:

1) Funds** and those who need funds. Including **, financial institutions, enterprises and institutions, residents, foreign businessmen, etc., can provide funds to the financial market, but also can raise funds from the financial market. This is a fundamental factor in the formation and development of financial markets.

2) Credit Instruments. This is what borrowed capital is traded in the financial markets. For example, various bonds, bills, negotiable certificates of deposit, loan contracts, mortgage contracts, etc., are the subject matter that must be relied on to realize investment and financing activities in the financial market.

3) Credit intermediaries. This refers to some institutions that act as intermediaries between the supply and demand of funds, and play the role of contact, intermediary and agent trading, such as banks, investment companies, exchanges, merchants and brokers.

4）**。The value of a financial market refers to the value it represents, i.e., the sum of the prescribed monetary funds and the interest rate or rate of return they represent.

There are many components of financial markets, and in summary, there are five main ones.

1 Subjects (i.e. participants) who are traded in financial markets

Initially, the main players (participants) in the financial market were enterprises, individuals and financial intermediaries with a surplus or shortage of monetary funds.

2 The object of financial market transactions (i.e., monetary funds).

Monetary funds become the object of transactions in the financial markets.

3 A medium of financial market transactions (i.e. financial instruments, also known as financial commodities).

The financial market medium of exchange refers to the instruments by which each entity trades monetary funds. In nature, financial instruments include debt certificates (e.g., notes, bonds) and certificates of title (e.g., **). There are many types of them, and each has its own characteristics to meet the different requirements of money traders.

4 The rate of interest (i.e. interest rate) traded in the financial markets

In the financial market, the interest rate is the "**" of monetary capital commodities, and its level is mainly determined by the average rate of profit of the society and the supply and demand of funds.

5. Management, organization and trading methods of financial market transactions.

The management of the financial market mainly includes the daily management of the management institution, the indirect management of the bank, and the legal management of the state. The financial markets are mainly organized in the form of exchange and over-the-counter trading. The main trading methods are spot trading, ** trading, credit trading, etc.

As with commodity markets, a complete financial market needs to have some necessary market elements.

There are many components of financial markets, and in summary, there are five main ones.

1 Subjects (i.e. participants) who are traded in financial markets

2 The object of financial market transactions (i.e., monetary funds).

3 The medium through which financial markets are traded (i.e., financial instruments.

Also known as financial commodities).

4 The rate of interest (i.e. interest rate) traded in the financial markets

5. Management, organization and trading methods of financial market transactions.

Extended Resources: Financial Markets.

Financial market refers to the general term of operating monetary capital borrowing, foreign exchange trading, valuable trading, bond and issuance, and other trading venues, and the combination of direct financial market and indirect financial market together constitute the financial market as a whole.

Financial markets can be classified from different perspectives:

1) According to the financing period, it can be divided into short-term financial market and long-term financial market.

The short-term financial market, also known as the money market, includes the bill discount market, the short-term deposit and loan market, the short-term bond market and the lending market between financial institutions. Long-term financial markets are also known as capital markets.

Including the long-term loan market and the ** market.

2) According to the trading object, it can be divided into local currency market (including money market and capital market), foreign exchange market, **market, **market, etc.

1. Participants in the financial market.

It refers to the unit of the buyer and seller formed by participating in the trading activities of the financial market.

1. ** Department: Raise funds through the issuance of bonds.

2. Industrial and commercial enterprises: that is, fundraisers, or capitalists.

3. Financial institutions: they are the most important participants in the financial market. There are mainly depository financial institutions, non-depository financial institutions, and ** banks.

4. Individual: It is the capital in the market.

2. Financial Instruments.

It is a written document that can prove the amount, duration and quality of the financial transaction.

Features of the financial instrument:

1. Repayment: refers to the time elapsed before the debtor must return the principal.

2. Liquidity: refers to the ability of financial instruments to quickly become currency without incurring losses.

3. Risk (safety): refers to the degree of risk of the principal and expected return of the purchase of financial instruments or the degree of guarantee of their safety.

4. The yield of loss per mu of harvesting.

Profitability: refers to the ratio of the return to the principal amount of a financial instrument.

3. The organizational form of the financial market.

It refers to the conduct of financial exchanges.

The way it is taken.

1. Organized centralized trading in a fixed place.

Bilateral auction".

Buyer's highest bid price = seller's lowest asking price.

2. Decentralized transactions are carried out through the counters of financial institutions.

Bargaining, also known as a storefront deal.

The financial market is composed of four major elements, namely the main body of the financial market, the object of the financial market, the organizational form of the financial market and the financial market.

Extended Materials] 1) Financial market entities.

The main body of the financial market refers to the participants in the financial market.

There are a wide range of participants in the financial market, including ** departments, ** banks, financial institutions, industrial and commercial enterprises, individual residents, etc., they are either the suppliers of funds, or the demanders of funds, or appear in dual identities.

Among them, the participation of ** banks in the financial market is not for the purpose of profit, but for the operation of monetary policy; Financial institutions not only act as suppliers and demanders of funds, but also act as important intermediaries in the financial market to promote the financing of both supply and demand of funds.

2) Financial market objects.

The object of the financial market refers to the instruments traded on the financial market, i.e., financial instruments.

The transaction of monetary funds in the financial market is based on financial instruments as the carrier, and the supply and demand of funds realize the financing of funds through the purchase and sale of financial instruments.

In other words, a financial instrument is a kind of certificate that reflects the creditor-debt relationship between the provider of funds and the needer of funds in the financial market.

There are many types of financial instruments, each with its own characteristics, such as notes, bonds, etc., which are basic financial instruments, and forwards, **, options and swaps that are derivative financial instruments.

3) The organizational form of the financial market.

The organizational form of the financial market refers to the trading venue of the financial market, and the trading of the financial market can be carried out in both the tangible and intangible markets.

There are three main forms of organization: one is an organized, institutional, and centralized way of trading with a fixed place, such as a ** exchange; the second is the counter transaction method, that is, the transaction method that is negotiated and decentralized by the buyer and the seller on the counter of the financial institution; The third is the way to realize transactions with the help of electronic computers, networks or other means of communication.

4) Financial markets**.

The financial market is determined by the supply and demand of funds, and the specific ** formed on the basis of financial instruments or financial product transactions includes interest rates, exchange rates, ****, **** and ****, etc., which are essentially assets.

What are the components of a financial market?

There are several elements that make up the financial market, and the popularization of knowledge.