1, funds market

The capital market, also known as the financial market, is the place where financial assets change hands. Broadly speaking, all financial institutions, such as deposit money and other financial assets, belong to the capital market. The capital market is divided into broad sense and narrow sense. The broad market of capital market refers to all financial transactions, including financial activities between financial institutions and customers, between financial institutions and financial institutions, between customers and customers, and the narrow sense of capital market is restricted to financial activities with negotiable instruments and certificates of value. Generally speaking, the capital market refers to the narrow sense of capital market.

2. Finance Assets

Financial assets, also known as financial instruments, refer to tools that can be used to finance funds, usually including currencies. credit Tools.

The so-called credit is to give others the right to control property for a period of time with the purpose of returning others. Popularly speaking, it is to lend money to others for a period of time and return it at maturity.

Financial assets are a kind of creditor's right for some future income, while financial liabilities are symmetrical. Financial assets have two main functions:

First, it provides a means through which surplus funds can be transferred to those who can make a favorable investment in these funds.

Second, it provides a means to transfer risks from those who invest in them to those who invest in them.

Between the providers and users of funds, such transactions can be achieved without an organized capital market. If in the credit activity, the borrower gets the right to use the currency, the loan is opened to the money lenders, and the creditor holds the evidence of the creditor's right, that is, the creditor's right is lost before the return period.