The scenario of global financial market is going through a phase of transformation every day. This is happening due to the result of increased competition among the participants of the different financial markets all over the world.
A financial market can be domestic or international. The global financial market is a collection of all the financial markets present in different countries of the world. The global financial market deals with buying and selling of financial security instruments like stocks and bonds, commodities like precious metals (gold and silver) and cereals, and other tradeable or exchangeable items on an international basis.
The global financial market functions as an important device for bringing increased liquidity.
The global financial market can be categorized into the following types:
Derivatives Markets: Futures Markets
Foreign Exchange Markets
Capital Markets: Stock markets and Bond markets
The global financial market forms a major part of the global economy. It facilitates the businesses in many ways, such as:
It helps the companies regarding financing of capital in capital markets
It helps international commerce and trade in the foreign exchange markets
It helps to transfer risks in the derivative markets
The different theories that are applied in the analysis of global financial markets include the following:
Index Momentum Analysis
Securities Momentum Analysis
Securities Chart Analysis
Securities Market Analysis
The global stock markets constitute an important segment of the global financial market.
The leading stock exchanges of the world include the following:
The New York Stock Exchange or NYSE (merged with Euronext)
London Stock Exchange
Euronext (merged with NYSE)
Tokyo Stock Exchange
The Bombay Stock Exchange (BSE)
Hong Kong Stock Exchange
NASDAQ or National Association of Securities Dealers Automated Quotations
Frankfurt Stock Exchange
Toronto Stock Exchange
Shanghai Stock Exchange
Madrid Stock Exchange
Australian Securities Exchange
Last Updated on : 1st August 2013