Explained: Types of Financial Markets

A financial market is a marketplace that provides an avenue for the sale and purchase of assets such as bonds, stocks, foreign exchange, and derivatives. Stock market: The stock market trades shares of ownership of public companies.  (To know more read: Stock exchange) Bond market/debt market: The bond market offers companies and the government opportunities…

The Informal (unorganized) financial enterprises

The organised sector mainly includes banks, Non-Banking Financial Companies (NBFCs), and Nidhi companies, where the first two are governed by the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs is responsible for the regulation of Nidhi Companies. The informal financial sector comprises partnership firms, sole proprietary concerns, individuals, and institutions like Local…