financial market

Where securities trade

A financial market is any system where buyers and sellers trade assets like stocks, bonds, currencies, or commodities.

Financial markets include stock exchanges, bond markets, and foreign exchange markets.

They serve to channel savings toward investment, establish prices through supply and demand, and provide liquidity—the ability to convert assets to cash quickly.

The financial markets reacted sharply to the interest rate announcement.

exchange

stock exchange

Securities trading marketplace

London Stock Exchange · commodities exchange · futures exchange · clearinghouse · trading floor · pit · electronic trading · over-the-counter · listing · index

instruments

securities

Tradeable financial assets

  • equitiesOwnership stakes in corporations
  • stocksOwnership stakes or inventory
  • bondsTies that unite

shares · derivatives · futures · options · commodities · mutual funds · ETFs · swaps · warrants · certificates of deposit

trading

brokerage

Transaction-facilitating service

shorting · margin trading · leverage · scalping · swing trading · algorithmic trading · high-frequency trading · stop-loss · technical analysis · charting

volatility

fluctuations

Irregular rises and falls

correction · bubble · crash · whipsaw · panic selling · swings · uncertainty · downturn · rally · boom

economics

inflation

Sustained price level increase

fiscal policy · central bank · Federal Reserve · economic indicators · consumer confidence · employment data · credit crunch · quantitative easing · stimulus · economic cycle

liquidity

cash flow

Money entering and exiting

convertibility · settlement · clearing · money supply · credit availability · illiquidity · capitalization · float

regulation

SEC

Stock market regulator

transparency · audit · Dodd-Frank · antitrust · enforcement · sanctions

Categories
Opposites
economic sector type

financial marketsubsistence economy

System without market surplus

commodity market · labor market · barter economy · manufacturing sector · agricultural market

market formality/structure

financial marketblack market

Illicit trading system

barter system · subsistence economy · underground economy · gift economy · shadow economy

abstraction level

financial marketfarmers market

Outdoor local produce sale

flea market · bazaar · swap meet · Main Street · street market

Family

market, finance, marketing, finances, financial, financing, markets, marketplace, financed

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