Types of Markets

Money Markets - Short term lending / borrowing

Financial institutions who wish to borrow or lend on a short term basis, provides liquidity

Capital Markets - Bonds & Shares

Primary

Initial sale:

• The Government selling bonds
• Firms raising funds through initial sale of shares

Secondary

• Trading existing bonds
• Trading shares on London Stock Exchange

Forex Markets - Currency Exchange

Foreign exchange markets - Trading currency

Spot Transaction - Buying foreign/local currency now

Forward Transaction - Buying in future (e.g. in 2 months)