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What is Financial Market? It monitors the input and output of cash flow in a country which measures country growth rate and fall rate. They reflect supply and demand. Financial markets help firms raise money, grow and expand their business.
Financial market can be either capital or money market. When any organization need funds for its services and engage in its long term investments, then it is capital market. When investment is done for short period, it is termed as money market.
When a large number of people or a huge amount of money is divided among number of individuals, it is termed as share. In the same way, capital of a company is divided into shares. Debentures are debt issued by company against any security assets and yields fixed rate of interest.
Ownership is equity. Let’s say, if you hold 20 out of 1000 shares of a company and that company makes profit, you will get your share and get great returns.
Watch this video to learn more about shares, equity, debentures, etc.
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