19-01-2012, 12:33 PM
MONEY MARKET seminar topic
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2 ! Features of Money Market?
-It is a market purely for short-terms funds or financial assets called near money.
-It deals with financial assets having a maturity period less than one year only.
-In Money Market transaction can not take place formal like stock exchange, only through oral communication, relevant document and written communication transaction can be done.
Continued……..
-Transaction have to be conducted without the help of brokers.
-It is not a single homogeneous market, it comprises of several submarket like call money market, acceptance & bill market.
-The component of Money Market are the commercial banks, acceptance houses & NBFC (Non-banking financial companies).
5 ! Composition of Money Market?
Money Market consists of a number of sub-markets which collectively constitute the money market. They are,
-Call Money Market
-Commercial bills market or discount market
-Acceptance market
-Treasury bill market
Summary
-The money market specializes in debt securities that mature in less than one year.
-Money market securities are very liquid, and are considered very safe. As a result, they offer a lower return than other securities.
-The easiest way for individuals to gain access to the money market is through a money market mutual fund.
-T-bills are short-term government securities that mature in one year or less from their issue date.
-T-bills are considered to be one of the safest investments.