We just finished five classifications of capital markets, so why not the financial markets as well?. Here is a list of the seven different classifications you’ll find in the financial markets.

1) Debt vs. Equity Markets
– Legal obligation vs.
– Ownership position in the business

2) Primary vs. Secondary
– New issues vs.
– Previously issued securities


3) Auction vs. OTC (Over the Center)
– Stock exchanges vs.
– Dealer markets

4) Money Market vs. Capital Markets
– Maturities of 3 years or less (usually 1 year or less) vs. (debt securities, are traded. eg. treasury bills)
– Longer maturities or no fixed maturities (common stocks) or
– Equity securities (warrants, options, etc.)

5) Intermediated vs. Non-Intermediated
– Direct securities (eg. bonds issued by a corporation) vs.
– Indirect securities (financial intermediary accepts deposits and loans out funds)

6) Cash/Spot vs. Futures
– Immediate vs. future settlement

7) Regulated vs. Unregulated/Exempt
– Stock exchanges vs. private placements

Anymore that I’ve missed?

[tags]financial markets, spot futures, cash futures, money market, capital market[/tags]