1. Market - An actual or nominal place where forces of demand and supply operate, and where
buyers and sellers interact (directly or through intermediaries) to trade goods, services, or
contracts or instruments, for money or barter.
Markets include mechanisms or means for (1) determining price of the traded item, (2)
communicating the price information, (3) facilitating deals and transactions, and (4) effecting
distribution. The market for a particular item is made up of existing and potential customers who
need it and have the ability and willingness to pay for it.
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A public place where buyers and sellers make transactions, directly or via intermediaries. Also
sometimes means the stock market
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Markets
The concepts of exchange and relationships lead to the concept of a market. A market is the set
of actual and potential buyers of a product.
1). Originally a market was a place where buyers and sellers gathered to exchange goods (such
as a village square).
2). Economists use the term to designate a collection of buyers and sellers who transact in a
particular product class (as in the housing market).
3). Marketers see buyers as constituting a market and sellers constituting an industry.
4). Modern economies operate on the principle of division of labor, where each person
specializes in producing something, receives payment, and buys needed things with this money.
Thus, modern economies abound in markets.
5). Marketers are keenly interested in markets.
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A capital market is simply any market where a government or a company (usually a corporation) can
raise money (capital) to fund their operations and long term investment. Selling bonds and selling stock
are two ways to generate capital, thus bond markets and stock markets (such as the Dow Jones) are
considered capital markets.economicsabout.com
A market in which individuals and institutions trade financial securities.
Organizations/institutions in the public and private sectors also often sell securities on the capital
markets in order to raise funds. Thus, this type of market is composed of both the primary and
secondary markets.
Both the stock and bond markets are parts of the capital markets. For example, when a
company conducts an IPO, it is tapping the investing public for capital and is therefore using the
capital markets. This is also true when a country's government issues Treasury bonds in the bond

2. market to fund its spending initiatives
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A market that issues new securities on an exchange. Companies, governments and other groups
obtain financing through debt or equity based securities. Primary markets are facilitated by
underwriting groups, which consist of investment banks that will set a beginning price range for
a given security and then oversee its sale directly to investors. Also known as new issue market.
The primary markets are where investors can get first crack at a new security issuance. The
issuing company or group receives cash proceeds from the sale, which is then used to fund
operations or expand the business. Exchanges have varying levels of requirements which must be
met before a security can be sold.
Once the initial sale is complete, further trading is said to conduct on the secondary market,
which is where the bulk of exchange trading occurs each day. Primary markets can see increased
volatility over secondary markets because it is difficult to accurately gauge investor demand for a
new security until several days of trading have occurred.
A market where investors purchase securities or assets from other investors, rather than from issuing
companies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQ
are secondary markets.
Secondary markets exist for other securities as well, such as when funds, investment banks, or entities
such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cash
proceeds go to an investor rather than to the underlying company/entity directly.
A newly issued IPO will be considered a primary market trade when the shares are first purchased by
investors directly from the underwriting investment bank; after that any shares traded will be on the
secondary market, between investors themselves. In the primary market prices are often set
beforehand, whereas in the secondary market only basic forces like supply and demand determine the
price of the security.
In the case of assets like mortgages, several secondary markets may exist, as bundles of mortgages are
often re-packaged into securities like GNMA Pools and re-sold to investors.
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financial markets
Markets for sale and purchase of stocks (shares), bonds, bills of exchange, commodities, futures and
options, foreign currency, etc., which work as exchanges for capital and credit.
money market
Network of banks, discount houses, institutional investors, and money dealers who borrow and lend
among themselves for the short-term (typically 90 days). Money markets also trade in highly liquid
financial instruments with maturities less than 90 days to one year (such as bankers' acceptance,

3. certificates of deposit, and commercial paper), and government securities with maturities less than
three years (such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such as
stock exchanges) money markets are largely unregulated and informal where most transactions are
conducted over phone, fax, or online. Long-term borrowing and lending markets are called capital
markets.
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A segment of the financial market in which financial instruments with high liquidity and very
short maturities are traded. The money market is used by participants as a means for borrowing
and lending in the short term, from several days to just under a year. Money market securities
consist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills,
commercial paper, municipal notes, federal funds and repurchase agreements (repos).
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The money market is used by a wide array of participants, from a company raising money by
selling commercial paper into the market to an investor purchasing CDs as a safe place to park
money in the short term. The money market is typically seen as a safe place to put money due the
highly liquid nature of the securities and short maturities, but there are risks in the market that
any investor needs to be aware of including the risk of default on securities such as commercial
paper.
The money market is used by a wide array of participants, from a company raising money by
selling commercial paper into the market to an investor purchasing CDs as a safe place to park
money in the short term. The money market is typically seen as a safe place to put money due the
highly liquid nature of the securities and short maturities, but there are risks in the market that
any investor needs to be aware of including the risk of default on securities such as commercial
paper.
Read more: http://www.investopedia.com/terms/m/moneymarket.asp#ixzz2CitTecGw
Broad term describing any marketplace where buyers and sellers participate in the trade of assets
such as equities, bonds, currencies and derivatives. Financial markets are typically defined by
having transparent pricing, basic regulations on trading, costs and fees and market forces
determining the prices of securities that trade.
Some financial markets only allow participants that meet certain criteria, which can be based on
factors like the amount of money held, the investor’s geographical location, knowledge of the
markets or the profession of the participant.
Financial markets can be found in nearly every nation in the world. Some are very small, with

4. only a few participants, while others – like the New York Stock Exchange (NYSE) and the forex
markets – trade trillions of dollars daily.
Most financial markets have periods of heavy trading and demand for securities; in these periods,
prices may rise above historical norms. The converse is also true – downturns may cause prices
to fall past levels of intrinsic value, based on low levels of demand or other macroeconomic
forces like tax rates, national production or employment levels.
Information transparency is important to increase the confidence of participants and therefore
foster an efficient financial marketplace. http://www.investopedia.com