A financial market is a place—either physical or virtual—where people get together to exchange money stuff. And when we say “money stuff,” we mean stocks, bonds, foreign currencies, commodities, and any other securities.
There are approximately six katrillion different financial markets. Okay, maybe not six katrillion. But...there's a bunch. The key thing to walk away with here is that, when someone says, “the financial market,” they could be talking about anything from the New York Stock Exchange to the forex market (for currencies and stuff) to the municipal bond market.
Into cryptocurrency? There’s a financial market for that. Or, if commodities are what really blow our hair back, there’s a financial market for that, too.
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Finance: What is an Auction Market?13 Views
Finance a la shmoop... what is an auction market.. next up on the block [Man speaking on stage]
we've got stock in the company comb Depot....
okay yeah so the New York
Stock Exchange is an auction market and you have no idea how much caffeine I had [Man holding a monster energy drink]
to have to get that right which means that the prices on the new york stock
exchange happen during a bidding process we're matching offers get you know [People frantically rushing to bid for stocks]
matched... buyers and sellers buy and sell at the
same time so in essence two transactions are happening at once the opposite of
this sort of market is the over the counter or OTC market where dealers are
the ones holding all the cards and they ultimately determine the price by [Dealer with the cards]
creating a spread from where they're willing to sell your shares and what
price they'll pay to buy your shares but in an OTC market well you don't get to [Dogs running side by side]
feel like you're watching the last leg of a greyhound race so you don't get all
my caffeinated auction talk there which is kind of cool we like that, right..right?
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