... a financial market is a place where the price of traded assets is established based on the supply and demand. Second, financial markets provide mechanism for investors to sell a financial asset. Finally, financial markets help investors to reduce transaction costs. 2.3 Classification of financial markets There are many ways to classify financial market. It is based on the type of financial claims. A financial market is divided into a fixed dollar amount and residual amount. Another way is based on the maturity of the claims. In this way, a financial market can be either money market or the capital market. The third way is by whether the financial claims are newly issued. This way divides a financial market into the primary market and the secondary market. 2.4 Globalization of financial markets Globalization refers to the integration of financial markets throughout the world into an international financial market. As a result of the globalization ...

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