Economics, despite all its greatness and breadth, is a simple science despite what it seems. Capital markets (financial markets) such as money market, stock market, gold and housing market, commodity exchange and stock exchange are among the common terms in this field. Perhaps it is the breadth of these terms in economics that makes it complex and difficult. We all know people or have heard or seen the biographies of people who have achieved great success in any of the major economic markets and become rich, successful and well-known figures. To be successful in any of these financial markets, you must first become aware of them.
What is a financial market or capital market?
Financial market is a broad term used for a wide range of markets. Every market in which a business is traded is a financial market. Even the markets in which securities are traded, including stocks, bonds, currencies, metals and their derivatives, are financial markets.
What is the money market?
One financial market is the money market, in which any highly liquid instrument or asset or instrument or micro-asset is used for exchange. These tools are commonly used by companies, individuals, businesses and corporations and are actually a kind of money substitute with a maturity of less than one year.
Lack of need to receive money and make expenses at the same time is one of the main reasons why individuals and businesses use the money market. Money market instruments include deposits, mortgages, remittances and bribery.
What is the capital market?
One of the financial markets is the capital market, also known as the stock market, a market for buying and selling bonds and securities. The main task of the capital market is to create a bridge between micro and macro capital suppliers, both real and legal, and capital applicants such as companies.
The capital market actually facilitates the process of buying and selling financial instruments (treasury bills, securities and certificates of deposit). The most prominent financial instruments in this market are securities, commonly known as stocks, and bonds or partnerships.
Unlike the financial money market, the local capital market is for offering and selling stocks and bonds for periods of more than one year.
Differences between money market and capital market
Contrary to many people’s beliefs, the money market and the capital market are not the same, and there are fundamental differences as a financial market. As mentioned earlier, one of the most obvious differences is that the capital market deals exclusively with medium- and long-term investments (one year or more), and the money market is often limited to buying and selling financial instruments with maturities of less than one year.
Another big difference between the money market and the capital market is their different financial instruments; While the money market uses deposits, mortgages, remittances, and bonds, the capital market uses securities and equity securities.
The local capital market is for supply and sale and stocks and bonds for periods of more than one year and medium and long-term investments, while the money market focuses on short-term investments of less than one year.
What is a Gold Market or Gold Exchange?
When we look at the fluctuations in the coin and gold capital market, especially in recent years, and add to the lack of economic stability and the devaluation of the national currency, it seems rational to turn stagnant capital into gold and coins.
But when it comes to the gold and coin market and their buying and selling, most of us have a clear picture of it; Go to the market or exchange offices to buy and sell gold and coins.
While this is not only a way to trade and buy gold and coins, there is also a less risky and more convenient way. Buying gold (gold fund) in the stock market is one of the convenient, cost-effective and low-risk ways to invest in this market.
The Gold Fund is another way to invest in the stock market.
But what is a gold fund? Assets collected from investors who invest in certificates of deposit such as gold, gold-based securities and gold certificates of deposit. Gold Fund In addition to being less risky than gold coins, people with far less capital are able to invest in it.
A gold deposit certificate is a security that indicates that the owner owns a certain amount of coins deposited in the warehouse. A warehouse located in the treasury of the Welfare Bank campus. The approved coins are all minted in 2007 and weigh 8.133 grams and 900 carats.
Anyone can buy gold, coins and other derivatives by receiving the stock exchange code through the capital market. The investor to buy coins must enter their orders in multiples of 10 in the system. That is, if he intends to buy 4 coins, he must enter 40 orders into the system.
Benefit to the whole country and society
Many of the stocks and securities offered in capital markets and other markets are related to major national projects. In addition to generating income and employment, these projects also contribute to the production cycle and national prosperity.
Profitability over other investments: Real estate, cars, currency, gold and coins, and other markets are volatile and often unpredictable. But the stock market and knowing how to buy and sell stocks is a profitable way to invest.
Investing in the stock market is a legal way with written and clear rules for making a profit and buying and selling. As a result, legal concerns and various comments or laws that change every day do not apply to it.
Transparent and always available
The stock market is a transparent market about which information can be obtained at any time. The history of each stock and how it rises and falls is clear and traceable.
Like Cash: Stocks are just like cash, and you can turn it into any day you want. In contrast, financial markets such as currency, coins, and housing go into hibernation with seasonal recessions and sudden shocks.