BASICS OF INVESTMENTS : Lesson 1

Before understanding investments and the high profits received from them, we should first have a clear idea of the types of market they are classified into. 1. On the basis of the their geographical areas : a) National Market - transactions taking place within the country. b) International Market - transactions taking place between two countries. 2. On the basis of subject of exchange : a) Commodity Market : Commodities like gold, cotton, oil etc are bought and sold. b) Capital Market : Long term finance is gained by joint stock companies in the form of equities, debentures, preference shares, bonds etc. c) Money Market : Short term finances to business enterprises are gained theough the money market in the form of loans, trade credits, instalment credits etc. d) Forex Market : Forex market or currency markets are those markets where currencies of various countries are traded like dollars, pounds, rupee, dinar etc. 3. On the basis of nature of transactions ...