A.1.2. Categories of Financial Markets
Markets exist for virtually every type of financial instrument. The list that follows encompasses the major categories of financial markets.
• Stock markets. Stock markets are markets for the trading of equity interests in business enterprises.
• Bond markets. Bond markets perform the same function as stock markets, but with respect to long-term debt instead of equity. Both stock markets and bond markets are considered capital markets.
• Commodities markets. The commodities markets are markets for bulk goods: grains, oil, cotton, metals, sugar, soybeans, and many more raw materials and agricultural products. Most commodities trades are made on commodities exchanges, where they may be traded on the spot market, for immediate delivery, or on the futures market, for delivery of a specified quantity of the commodity at a specified future date. Most commodities contracts are standardized, w