The financial market provides avenue for insurance of and trading in financial instruments on shorts, medium and long term, through the process of intermediation I. e mobilization of funds from the surpluse sector of the economy to the deficit sector.
It can therefore be regarded as a place where securities are brought and sold with the aim of enhancing financial capability. Hence, financial market can be broadly classified into two namely:the money market and the capital market.
Examples of money market instruments are treasury bills, treasury certificate, certificate of deposits and that of the capital market are ordinary shares and debenture to mention but a few. It is worthy of note that the instrument are evidence of ownership or indebtedness to the holders while some are transferable, negotiable or redeemable some are not.
