We shall discuss some of the basic concepts related to markets and the terminology associated with trading. Perfect Market: A market is said to be perfect, when all the potential sellers and buyers are promptly aware of the prices at which transaction takes place. Any buyer can purchase from any...
Financial Markets in the real economy: Interlinkages The need for developed financial markets in India is also due to the increasing interlinkages with global financial systems. The concept of globalization today is no longer restricted to its traditional sense, i.e., variety of cross-border transactions in goods and services, but also...
Global Financial Markets The earliest known organized market dates back to the second century BC. The Roman Empire had developed many characteristics similar to modern capitalism. Markets flourished because the contemporary Roman law allowed the following activities: Free transfer of property was permitted Money could be lent based on interest...
The financial system of a country is critical for its development and growth. In the contemporary era of Globalization, it is critical to align the economic structure in line with the developed economies. At the same time, the core objective of the Indian Financial System needs to cater to the...
Derivatives Markets: Financial Instruments that derive their value from underlying asset are commonly referred to as derivatives. When the need arose to mitigate risk due to vagaries of commodity prices, derivatives instruments were developed. Initially, these pertained to linear pay-off structure such as forward and futures contracts. Subsequently, in the...
Global Commodity Markets have evolved in the last 150 years with the emergence of the organized financial marketplace. The need to mitigate risk due to the volatility in asset prices led to innovation of sophisticated financial instruments. Improved satellite technology with superior digital communications and faster processing speed facilitated emergence...