Largest financial markets

Financial markets commodity markets international trade

A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods.

There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers, including households, firms, and government agencies, in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.

– and are used to match those who want capital to those who have it.

Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends. This return on investment is a necessary part of markets to ensure that funds are supplied to them.

Definition[edit]

In economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them.

The term "market" is sometimes used for what are more strictly exchanges, organizations that facilitate the trade in financial securities, e.g., a stock exchange or commodity exchange. This may be a physical location (like the NYSE, BSE, NSE) or an electronic system (like NASDAQ). Much trading of stocks takes place on an exchange; still, corporate actions (merger, spinoff) are outside an exchange, while any two companies or people, for whatever reason, may agree to sell stock from the one to the other without using an exchange.

Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on a stock exchange, and people are building electronic systems for these as well, similar to stock exchanges.

Free-market ideologues

by collapse

Free-market ideologues said the energy titan's triumphs proved
them right. Now they should admit its humiliating collapse proves
they were wrong.
Enron gave generously to House Majority Whip Tom Delay, R-Texas,
who thoughtfully introduced an electricity deregulation bill. The
company, of course, was largely responsible for the grooming of
George W. Bush as a national figure.
'I BELIEVE IN GOD AND I BELIEVE IN FREE MARKETS,' Enron CEO Kenneth Lay told the San Diego Union-Tribune back in February. What's more, continued this titan of the energy business, Jesus himself was something of a '90s-style libertarian: 'He wanted people to have the freedom to make choices

International banking (part 2)

by hmm-well

Gregory Fleming, the ebullient head of markets and investment banking at Merrill Lynch in New York, predicts that in perhaps only seven years' time up to 75% of his firm's global markets and investment-banking revenues may come from outside America, compared with 50% now. "This is not because of a lack of growth in this country. It is more because of growth of economies around the world," he says. "For the first time there is a broad-based global financial system."
Next stop the N11
Having already occupied Europe, the top ten investment banks have set their sights on the rest of the world, too

Global Oil Pricing

by 58andfixed


Friday, January 13th, 2012
Chris Cook: former compliance and market supervision director of the International Petroleum Exchange.
Why Oil Prices Are About to Collapse

Global Oil Pricing
The “Brent Complex” is aptly named, being an increasingly baroque collection of contracts relating to North Sea crude oil, originally based upon the Shell “Brent” quality crude oil contract that originated in the 1980s.
It now consists of physical and forward BFOE (the Brent, Forties, Oseberg and Ekofisk fields) contracts in North Sea crude oil; and the key ICE Europe BFOE futures contract, which is not a deliverable contract and is purely a financial bet based upon the price in the BFOE forward market

Commodity finance being done by Trading Houses  — Spend Matters
And banks fund these companies through trade lines, just like they fund so many hedge funds, factors, and others now interested in trade receivables. See – Shadow Banking Market grows and grows and Commodity Trade Finance – Still the Banks' Domain.

McGraw-Hill Mastering Trade Selection and Management: Advanced Strategies for Long-Term Profitability
Book (McGraw-Hill)
Wiley Option Market Making: Trading and Risk Analysis for the Financial and Commodity Option Markets
Book (Wiley)
INTERNATIONAL MONETARY FUND Regional Economic Outlook, October 2011: Sub-Saharan Africa - Sustaining the Expansion (World Economic & Financial Surveys)
eBooks (INTERNATIONAL MONETARY FUND)
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