CAPITAL MARKET
These are the markets for the long term debt & corporate stocks.
Stock Exchange:
A stock exchange is a place where the listed shares, Term finance certificates (TFC)
and national investment trust units (NIT) are exchanged and traded between buyers and
sellers.
Long term bonds:
Long term government & corporate bonds are also traded in capital markets.
Money Markets
IT is a market where there is buying and selling of short term liquid debt instruments. (Short term means one year or less). Liquid means something which iseasily en-cashable; an instrument that can be easily exchanged for cash.
Following financial instruments are traded in money markets.
Short term Bonds
o Government of Pakistan: Federal Investment Bonds (FIB), Treasury-Bills (TBills)
o Private Sector: Corporate Bonds, Debentures
Call Money, Inter-bank short-term and overnight lending & borrowing
Loans, Leases, Insurance policies, Certificate of Deposits (CD’s)
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