What are stock exchange and stock broker?
Stock Exchange: A stock exchange is an organized and regulated financial market where securities (bonds, derivatives, shares) are bought and sold on behalf of the investors at prices governed by the demand and supply for the specific stock. The Stock exchanges provide clearing house facilities for netting payments and securities delivery. The Clearinghouse guarantees all…
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Overview of Money Market Products in India
The money market is a critical segment of the financial system where short-term debt instruments are traded. These instruments typically have maturities of up to one year and are considered low-risk investments offering high safety and liquidity. The money market plays a vital role in helping governments, corporations, and financial institutions manage their short-term funding…
Read article Overview of Foreign Exchange Market Products and Practices in India
In India, over 90% of treasury operations in the foreign exchange (forex) market occur between banks. These inter-bank foreign currency transactions serve two primary purposes: Understanding the Exchange Rate The exchange rate is the price at which one currency is exchanged for another. It functions similarly to product pricing in a market. For example, just…
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What is a money market?
The money market instrument is a marketplace for trading in short-term debt investments considered low-risk investments with high safety. It is primarily used by governments and corporations to keep their cash flow steady, and for investors to make a modest profit. The money market ensures a balance between the demand for short-term funds and their…
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An Introduction to Treasury Management: Functions, Importance, and Strategic Role
IntroductionTreasury management refers to the strategic oversight and administration of an organization’s financial assets and liabilities. It encompasses a broad range of activities including cash management, investment planning, funding decisions, and financial risk mitigation. The primary objective of treasury management is to ensure that sufficient liquidity is maintained, cash flows are optimized, financial risks are…
Organization of Treasury Operations in Banks
IntroductionThe treasury department in a bank is a critical function responsible for managing liquidity, investments, funding, and financial risk. To ensure effective execution and control, treasury operations are typically structured into three key components: the front office, middle office, and back office. This tripartite structure ensures that transactions are executed efficiently, risks are properly monitored,…
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