Types of Markets - JSS2 Business studies Lesson Note

Capital Market:

Meaning: It's a market where long-term securities like stocks and bonds are traded.

Features: Capital markets help businesses raise funds for growth and expansion by issuing stocks or bonds to investors. Investors can buy these securities as investments to earn returns.

 

Money Market:

Meaning: It's a market where short-term debt securities like treasury bills, commercial paper, and certificates of deposit are traded.

Features: Money markets provide short-term liquidity to governments, financial institutions, and corporations. They facilitate short-term borrowing and lending of funds.

 

Commodity Market:

Meaning: It's a market where commodities like gold, oil, agricultural products, and raw materials are traded.

Institutions and Instruments Traded:

Institutions: Commodity exchanges like the Chicago Mercantile Exchange (CME), London Metal Exchange (LME), etc.

Instruments: Futures contracts, options contracts, and spot contracts for various commodities are traded in commodity markets.