Financial markets are places where buyers and sellers/lenders meet. They play a crucial role in the build-up of capital and the production of goods and services. The financial markets are often deemed as a performance indicator of an economy.
Importance of financial markets in the Indian economy
The well-functioning and resilient financial markets are important for the Indian economy as they help the monetary policy transmission.
They aid in the efficient allocation of resources.
They facilitate the absorption and allocation the risks in the financial sector. They make the economy more shock-absorbent in case of a major global financial turmoil.
Financial markets help to mobilise savings and channel them to the most productive use that ensures the growth of the Indian economy.
Financial markets help with the cost assessment of financial assets.
They also help liquidate financial assets. This comes in handy in cases where the economy needs more liquidity to handle inflation.
Financial markets provide platforms for buyers and sellers.
Financial markets are important as they result in a reduction in the cost of transactions. According to various frameworks, it is important to create cheaper means of transactions.
A well-developed financial market lowers the cost of financing and also provides a haven for returns on investment.
The financial market aids wealth creation and ensures a linkage between savings and investment. This investment fulfils the long-term and short-term financial needs of household and corporate sectors.
A question might arise about how financial markets function for the economy to flourish. Investment bankers play the role of bankers in financial markets in any economy.
They meet the demands of borrowers and lenders along with the whole economy.
Financial markets also provide access to capital for corporations, industries, and governmental organisations.
Functions of the financial market in the Indian economy
Financial markets set the prices for trading, raise capital, and transfer liquidity and risk at a global level. Financial markets are places where finance is raised by institutions and they also issue securities. The financial market reduces the gap between organisations or people with more money with those who need money.
Types of financial markets
1. Stock market
The stock market is where the exchange of stock shares and financial securities of public companies takes place. The companies float shares for the general public to raise capital.
2. Capital market
The capital market is the most liquid market in India. It is the place where lending and borrowing take place. Instruments like treasury bills, certificates of deposits, and commercial papers are used in this market.
3. Bond market
A bond market is a place where the debt instruments issued by various corporations are sold and bought. The market includes entities that cover securities issued by the government and corporations. Investment banking and financial markets
Investment banking organises complex and large financial transactions that run the financial markets. They undertake functions such as:
Initial Public Offering
Underwriting issuance of new securities of a corporation or institutions
Managing the corporation’s IPO
Provide advice for mergers, reorganisations, and acquisitions
To become an investment banker, you can opt for certification courses in investment banking.
Learn investment banking with Imarticus Learning
Imarticus Learning brings to you our flagship program in investment banking course with placement. Certified Investment Banking Operations Professionals (CIBOP) program is an industry-approved program for making a career as an investment banker. The extensive program is best for learners who have less experience and are looking for career growth.
The program is designed in collaboration with Academy Euronext Group. The 150-hour program includes topics like:
Trade life cycle
Reference data management
The CIBOP program is designed for growth in your investment banking career. It is offered in classroom and online training formats. Participants graduating from either format will be eligible for placements to become investment bankers.
Why choose us?
Imarticus has partnerships with over 500 organizations to aid placement. There is a 100% guarantee of job interviews after completion of the investment banker certification.
The live learning module uses interactive training methods for a better job-ready future.
Students will also complete 25 real-world projects and case studies that are designed by industry experts.
The program comes with the benefits of dedicated career services. Here, you can learn how to develop a resume, enhance your profile, prepare for an interview, and more.
Our alumni work at companies like:
Bank of America
With over 40,000 placements, Imarticus Learning has helped learners experience a 60% hike in salaries. Check out more information about the investment banker certification here.