electronic system in the capital market industry and money market in labor market so that the electronic system can occur in the deposition of e-money AMNIMARJESLOW GOVERNMENT 91220017 Ichiba toraianguru no torikomi 0209010014 LJBUSAL IN WIDTH LJBUSAR ___ Thanks to Lord about e- Triangle Market Vision __ Gen. Mac Tech Zone e- The point Matrix for Triangle Marking so Market Vision

       



Uptake of the market triangle: in traditional industries usually known as the service industry and manufacturing industry, the two industries have now become an integral part because the service industry without manufacturing industry is not good as well as the manufacturing industry must be accompanied in the sale must be accompanied by the service industry. Several types of industries above both services and manufacturing are supported by the traffic triangle market, namely: money market, capital market and labor market. in practice this market triangle is still experiencing an unbalanced transaction due to the problem of inaccurate data information and manual systems in its transactions, in the 21st century there are many theories and concepts that are good for harmonizing this market triangle that is by adding value to the process using e- Money and market triangle transactions use electronic transactions or use electronic media so that the data analysis process can be accumulated and synchronized validly and reliably. By the 22nd century, technology for synchronizing this market triangle would be even more stable because all the networks and infrastructure of electronic transactions in the world had been synchronized with the existence of the Internet, robotic and sensor sensors and electronic transducers and precision software that was closer to the language of the human brain in the sense said e-SHIN to A / D / S. Route tour is well installed on earth.


                                                                                           
                            Love in e- S H I N to A/D/S tour Route on  market Triangle 



     
                                  






                                     Gen . Mac Tech Zone e- Triangle Matrix Market  

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                                                     Digital Cash



          
                                     

What is Digital Cash?

Digital cash aims to mimic the functionality of paper cash, by providing such properties of anonymity and transferability of payment. Digital cash is intended to be implemented data which can be copied, stored, or given as payment (for example, attached to an email message, or via a USB stick, bluetooth, etc).  Just like paper currency and coins, digital cash is intended to represent value because it is backed by a trusted third party (namely, the government and the banking industry).

Most money is already paid in electronic form; for example, by credit or debit card, and by direct transfer between accounts, or by on-line services such as PayPal. This kind of electronic money is not digital cash, because it doesn't have the properties of cash (namely, anonymous and off-line transferability between holders).

How does Digital Cash work?

The figure shows the basic operation. User A obtains digital cash "coins" from her bank (and the bank deducts a corresponding amount from her account).  The user is now entitled to use the coins by giving them to another user B, which might be a merchant. B receives e-cash during a transaction and see that it has been authorized by a bank. They can then pay the cash into their account at the bank.

Ideal properties of a Digital Cash system

Ideal properties:

1. Secure. Alice should be able to pass digital cash to Bob without either of them, or others, able to alter or reproduce the electronic token.
2. Anonymous. Alice should be able to pay Bob without revealing her identity, and without Bob revealing his identity. Moreover, the Bank should not know who Alice paid or who Bob was paid by. Even stronger, they should have the option to remain anonymous concerning the mere existence of a payment on their behalf.
   
3. Portable. The security and use of the digital cash is not dependent on any physical location. The cash should be able to be stored on disk or USB memory stick, sent by email, SMS, internet chat, or uploaded on web forms. Digital cash should not be restricted to a single, proprietary computer network.
4. Two-way. Peer-to-peer payments are possible without either party required to attain registered merchant status (in contrast with today's card-based systems). Alice, Bob, Carol, and David share an elaborate dinner together at a trendy restaurant and Alice pays the bill in full. Bob, Carol, and David each should then be able to transfer one-fourth of the total amount in digital cash to Alice.
5. Off-line capable. The protocol between the two exchanging parties is executed off-line, meaning that neither is required to be host-connected in order to proceed. Availability must be unrestricted. Alice can freely pass value to Bob at any time of day without requiring third-party authentication.
6. Wide acceptability. The digital cash is well-known and accepted in a large commercial zone. With several digital cash providers displaying wide acceptability, Alice should be able to use her preferred unit in more than just a restricted local setting.
7. User-friendly. The digital cash should be simple to use from both the spending perspective and the receiving perspective. Simplicity leads to mass use and mass use leads to wide acceptability. Alice and Bob should not require a degree in cryptography as the protocol machinations should be transparent to the immediate user.

These are ideal properties, and no known system satisfies them all.

Categorization of payment systems 

 

Implementations of payment systems that don't satisfy all the requirements may be conveniently classified according to these criteria:

1. Anonymous or identified. Anonymous e-cash works just like real paper cash. Once anonymous e-cash is withdrawn from an account, it can be spent or given away without leaving a transaction trail. This however, can be considered contentious. Identified payment systems such as credit card payment, or payment by Paypal leave an audit trail, and the identity of the payee and the payer is known to the Bank, and (usually) to each other.
2. Online or offline. Online means you need to interact with a bank (via a network) to conduct a transaction with a third party. Offline means you can conduct a transaction without having to directly involve a bank.
3. Requiring a trusted platform. Some protocols may require a trusted platform, such as a smart card. Smart cards are small plastic cards like credit cards, bearing a chip. They are tamper-resistant and can force Alice and Bob to adhere to the protocol. This is convenient for the protocol designer, but threatens to tie users to proprietary interfaces and to remove transparency of the system. In contrast, internet protocols endorsed by the IETF are open and can be interoperably implemented by anyone.

Two big problems

How can we guarantee anonymity? If the bank can see which coins it gives to A, and later it sees the same coins coming back from B. it can infer that A has paid them to B (possibly via an intermediary).

How can we avoid double spending (this term was first used by David Chaum in 1992)? Because electronic files can be duplicated, a big challenge for digital cash is how to stop users spending money twice. On-line solutions achieve this by making the payee check with the bank before acknowledging payment. Off-line solutions have to use more elaborate methods.

Cryptographic primitives

Some technical concepts are needed to understand digital cash protocols.

• Blind signatures. Suppose Charlie wants Dianne to sign a message m, but does not want Dianne to know the contents of the message. This might seem like a strange thing -- why would Diane sign something without knowing what it is? But the concept has useful applications in situations involving anonymity, such as digital cash. The arrangement works like this:
• Charlie "blinds" the message m, with some random number b (the blinding factor). This results in blind(m,b).
• Dianne signs this message, resulting in sign(blind(m,b),d), where d is Dianne's private key.
• Charlie then unblinds the message using b, resulting in unblind(sign(blind(m,b),d),b). The functions are designed so that this reduces to sign(m,d), i.e. Dianne's signature on m.
Details of how blind signatures can be implemented using RSA are given in another lecture.


• Secret splitting. Suppose I have a secret message string m, and I want to give part of it to Alice and part of it to Bob, in such a way that neither of them individually can tell anything about the secret, but if they get together then they can reconstruct it.
• One way might be to split the secret string into two parts, m1 and m2, such that m = m1.m2, i.e. concatening m1 and m2 yields m. This is not very satisfactory because Alice and Bob each learns the first half or the second half of the message.
• A better way is to invent a random number r, and XOR m with r. Give r to Alice, and m XOR r to Bob. Now neither of them knows anything about the secret, because each of them has what looks like a completely random string. However, if they get together, they can obtain m by calculating r XOR (m XOR r) -- that is indeed m.
• This can be generalised to any number of participants.

Online Digital Cash

Let's look at how each component works.

Withdrawing coins

The following protocol is used in order to create a single coin of a given denomination, say m.

1. The customer creates k units of money m. Each unit contains some header information, the denomination, and a unique serial number. The serial number is randomly generated and would be long enough so that collision does not take place (e.g. 64-bit serial number has a probability of collision of 1/2⁶⁴). So the money would have the format:

m₁ = (header info, denomination, serial number), …, m_k = (header info, denomination, serial number).

2. The customer blinds each of them with different binding factors b_i, and sends them to the bank for signing.
3. The bank randomly chooses k-1 of them to check, and leaves one unit i.
   
4. The customer gives the bank all the blinding factors except the one for unit i
5. The bank can now check the content to make sure the customer has not tried to cheat (e.g. by putting an amount larger than the agreed amount m). There is still a chance that the bank would not check the unit that is fraudulent but the probability of this happening deceases as we increase the size of k
6. If all checks out, the bank signs the remaining unit with its private key d and sends it back to the customer.
7. The customer un-blinds it by using b_i to obtain the coin m_i  signed by the bank.

Thus, a coin consists of a signed message from the bank, asserting the value of the coin. Importantly, the bank does not know the serial number of the coins. That is how we obtain anonumity.

Spending and depositing coins

These procedures are straight forward. To spend the coins, just give them to the payee. To redeem them, just give them to the bank. The bank will check their validity and credit your account.

To tackle the double spending problem, the payee has to verify the coin with the bank at the point of sale in each of the transactions. This verification of the legitimacy of the coin requires extra bandwidth and is a potential bottleneck of the system especially when the traffic is high. The real time verification also means there is a need for the synchronization between bank servers.

Pros and Cons of the online digital cash system

Here is the summary of the pros and cons of the online system:

Pros

• Provides fully anonymous and untraceable digital cash:

• No double spending problems (coins are checked in real time during the transaction).

• No additional secure hardware required
  

Cons

• Communications overhead between merchant and the bank.

• Huge database of coin records -- the bank server needs to maintain an ever-growing database for all the used coins’ serial numbers.

• Difficult to scale, need synchronization between bank servers.

• Coins are not reusable

Offline Digital Cash

In the off-line scheme, the withdrawal and disposal of the coins are very similar to the one in the on-line scheme; the main difference is in how coins are spent, in order to prevent double-spending without the need to verify with the bank. This is achieved by adding an additional component in the model: it is a trusted party, which performs a digital transformation of the coin when it is transferred between users. This trusted party may be implemented as a tamper–resistant device. In a real life example, you could think of it as a smart card reader at the point of sale, although note that it is not required to be on-line. The device is trusted by the bank and by users, and is used to verify the authenticity of the coin and to address the double-spending problem. It does not prevent users from double-spending, but it provides a means to trace them if they do double-spend. This has to be carefully designed, in order to keep anonymity. Secret splitting is used to allow the user to be anonymous as long as he/she doesn’t double spend. Details are given below.

In this system, coins are reusable. The merchant can spend the coin elsewhere with other parties through another tamper-resistant device before the coin is finally deposited back to the bank for verification.

In additional to the secret splitting method, in order to add extra security to the offline system, there could be a link between the bank and the temper-resistant device which allows the T.R.D. to download a blacklist of double spenders in a set period of time when the traffic is low. This reduces the chance of people double spending their money in the first place. 

 

How off-line protocol works

A coin will contain the following:

• Serial number – a unique number that identifies the coin
• Denomination – the actual value of the coin
• Validity Period
• Transaction list – has an arbitrary number of transaction items.

Withdrawing and depositing the coins is the same as in the on-line method, but spending the coins is different.

A transaction item is created when the coin is transferred between the customer and the merchant. Each transaction item consists of n pairs. A pair (p1,p2) is the identity of a user, split into two parts using the secret splitting idea described above. The transaction list consists of k transaction items. In all but the last one, half of each pair has been blanked out.

Thus, a transaction list might look like this:

P1	P2
ALI	---
---	ICE
---	E
BO	---
---	OB
B	---
CHA	RLIE
CH	ARLIE
CHARL	IE

If P1 and P2 are XORed the original id of the user will be revealed. But only the last owner can be seen, "CHARLIE". Note that secret sharing is done with XOR, not concatenation. Concatenation is used for illustration just to make the picture readable. There is no way the identities of ALICE and BOB can be extracted from the transaction list.

When a user spends their money, the protocol will randomly blank some of P1 and some of the P2 for the current owner, and adds another list of P1 and P2 for the new owner.

How does this detect double spending?

If a user makes a copy of a coin before they spend it, they have the possibility to spend that coin again. However, when the coin is finally returned to the issuer, it will be possible to discover the culprit. This is achieved by combining a particular part of the identity from the original coin with its corresponding part from the copied coin. Note that the corresponding part will have been blanked out in the original coin.

The probability of catching a user

The probability of catching a user depends on the number of identity pairs used in the transaction. The more pairs used, the greater the chance of catching the culprit. The probability of catching the culprit is:

1-½ⁿ

Where n is the number of pairs used.

Example, if n=5 then the chance of catching a user is 0.97. If n=20, it is more than 0.00000095; in that case, a double-spender would have only one chance in a million of not being caught.

Memory requirements

By allowing more than one person to use the same coin, there will be extra data appended to the coin ‘file’. Thus, the size of this file will be ever growing. A possible solution to this is to have a maximum number of transactions. This would limit the number of ID’s added to the file. No more transactions can take place once the maximum has been reached, and the coin must be banked.

Also to prevent the banks database of serial numbers there maybe a validity period (or expiration date) associated with the coin, and then the coin will no longer be able to be banked. This would allow the bank to ‘clean-up’ its database of invalid serial numbers. 

 

Pros and Cons of the offline digital cash system

Pros

• Off-line, portable scheme

• User is fully anonymous unless double spends

• Bank can detect double spender (with high probability)
  

• Banks don’t need to synchronize database in each transaction.

• Coins are reusable

Cons

• Might not prevent double spending immediately

• More expensive to implement - the extra security hardware needed in the system requires an additional cost.

Policy considerations 

 

There is a lot of concern regarding the anonymity of digital cash with respects to illegal activities. For example it can be used for money laundering and ransom demands without being able to trace the culprit. There are proposals/solutions that overcome this intractability, involving identity escrow and trusted parties.

One of these solutions is to have a trusted third party in the transaction on money. In the below diagram it is called a judge. The judge would have access to either the massage-signature pair or the signer’s view of his protocol. With this information and the information from either the sender or signer the culprit can be traced.

However, digital cash has not taken off, in contrast with other electronic payment systems such as Paypal.

Paypal

Paypal is not "digital cash", because it doesn't attempt to provide properties similar to cash (anonymity, off-line usage). Instead, it aims to replace credit cards, and is much more secure. In contrast with credit cards, Paypal payees do not have to have merchant status. Thus, it is attractive to private individuals selling at auctions.

Digital cash was invented by David Chaum in 1988. In 1990 he founded DigiCash, a pioneering firm in the area, but attracted only $160k US dollar in two years, declared bankruptcy in 1998, and was bought by eCash Technologies. Now eCash is having its own troubles and has been bought by another company called InfoSpace.

PayPal was founded in December 1998. Adopting aggressive marketing campaigns offering $10 (and later $5) for new users to sign up, the firm grew at a meteoric rate of 7–10 percent per day between January and March 2000. In October 2002 PayPal was acquired by eBay. PayPal had previously been the payment method of choice by over fifty percent of eBay users, and the service competed with eBay's subsidiary BillPoint. eBay has phased out its BillPoint service in favor of retaining the PayPal brand. PayPal's only substantially similar competitor is now BidPay, after Citibank's c2it service closed in late 2003, and Yahoo!'s PayDirect service closed in late 2004. In 2004, the total value of transactions through the PayPal system was $18.9 billion, up 55% year over year. As of the end of Q2 2005, PayPal operates in 57 countries (including China) and it manages over 78.9 million accounts. Every second PayPal processes an average of $823 in total payment volume.

Conclusion

The elimination of physical cash from our economy is already feasible from a purely technological perspective. However, substantial additional investment in equipment and cards would be needed to permit even purchases such soft drinks to be made.

But transactional privacy is at the heart of critics' attack on digital cash. Because it’s untraceable,  there are concerns about money laundering, offshore banking and tax havens, and has been closely monitoring developments of digital cash. Investors don’t have confidence in the development of digital cash. In contrast, non-anonymous, on-line payment systems like Paypal are enjoying huge success.


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                                 The First Triangle market :   Capital market




A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Financial regulators like the Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Modern capital markets are almost invariably hosted on computer-based electronic trading platforms; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market, though sales to individuals form only a tiny fraction of the total volume of bonds sold. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets. There are many thousands of such systems, most serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, and government departments. Physically, the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong.


  
                            


A capital market can be either a primary market or a secondary market. In primary market, new stock or bond issues are sold to investors, often via a mechanism known as underwriting. The main entities seeking to raise long-term funds on the primary capital markets are governments (which may be municipal, local or national) and business enterprises (companies). Governments issue only bonds, whereas companies often issue both equity and bonds. The main entities purchasing the bonds or stock include pension funds, hedge funds, sovereign wealth funds, and less commonly wealthy individuals and investment banks trading on their own behalf. In the secondary market, existing securities are sold and bought among investors or traders, usually on an exchange, over-the-counter, or elsewhere. The existence of secondary markets increases the willingness of investors in primary markets, as they know they are likely to be able to swiftly cash out their investments if the need arises.

A second important division falls between the stock markets (for equity securities, also known as shares, where investors acquire ownership of companies) and the bond markets (where investors become creditors).

Versus money markets

Finance

The money markets are used for the raising of short-term finance, sometimes for loans that are expected to be paid back as early as overnight. In contrast, the "capital markets" are used for the raising of long-term finance, such as the purchase of shares/equities, or for loans that are not expected to be fully paid back for at least a year.
Funds borrowed from money markets are typically used for general operating expenses, to provide liquid assets for brief periods. For example, a company may have inbound payments from customers that have not yet cleared, but need immediate cash to pay its employees. When a company borrows from the primary capital markets, often the purpose is to invest in additional physical capital goods, which will be used to help increase its income. It can take many months or years before the investment generates sufficient return to pay back its cost, and hence the finance is long term.
Together, money markets and capital markets form the financial markets, as the term is narrowly understood. The capital market is concerned with long-term finance. In the widest sense, it consists of a series of channels through which the savings of the community are made available for industrial and commercial enterprises and public authorities.

Versus bank loans

Regular bank lending is not usually classed as a capital market transaction, even when loans are extended for a period longer than a year. First, regular bank loans are not securitized (i.e. they do not take the form of a resaleable security like a share or bond that can be traded on the markets). Second, lending from banks is more heavily regulated than capital market lending. Third, bank depositors tend to be more risk-averse than capital market investors. These three differences all act to limit institutional lending as a source of finance. Two additional differences, this time favoring lending by banks, are that banks are more accessible for small and medium-sized companies, and that they have the ability to create money as they lend. In the 20th century, most company finance apart from share issues was raised by bank loans. But since about 1980 there has been an ongoing trend for disintermediation, where large and creditworthy companies have found they effectively have to pay out less interest if they borrow directly from capital markets rather than from banks. The tendency for companies to borrow from capital markets instead of banks has been especially strong in the United States. According to the Financial Times, capital markets overtook bank lending as the leading source of long-term finance in 2009, which reflects the risk aversion and bank regulation in the wake of the 2008 financial crisis.
Compared to in the United States, companies in the European Union have a greater reliance on bank lending for funding. Efforts to enable companies to raise more funding through capital markets are being coordinated through the EU's Capital Markets Union initiative

Examples

Government on primary markets

One Churchill Place, Barclays headquarters in Canary Wharf, London. Barclays is a major player in the world's primary and secondary bond markets.

When a government wants to raise long-term finance it will often sell bonds in the capital markets. In the 20th and early 21st centuries, many governments would use investment banks to organize the sale of their bonds. The leading bank would underwrite the bonds, and would often head up a syndicate of brokers, some of whom might be based in other investment banks. The syndicate would then sell to various investors. For developing countries, a multilateral development bank would sometimes provide an additional layer of underwriting, resulting in risk being shared between the investment bank(s), the multilateral organization, and the end investors. However, since 1997 it has been increasingly common for governments of the larger nations to bypass investment banks by making their bonds directly available for purchase online. Many governments now sell most of their bonds by computerized auction. Typically, large volumes are put up for sale in one go; a government may only hold a small number of auctions each year. Some governments will also sell a continuous stream of bonds through other channels. The biggest single seller of debt is the U.S. government; there are usually several transactions for such sales every second, which corresponds to the continuous updating of the U.S. real-time debt clock ^.

Company on primary markets

When a company wants to raise money for long-term investment, one of its first decisions is whether to do so by issuing bonds or shares. If it chooses shares, it avoids increasing its debt, and in some cases the new shareholders may also provide non-monetary help, such as expertise or useful contacts. On the other hand, a new issue of shares will dilute the ownership rights of the existing shareholders, and if they gain a controlling interest, the new shareholders may even replace senior managers. From an investor's point of view, shares offer the potential for higher returns and capital gains if the company does well. Conversely, bonds are safer if the company does poorly, as they are less prone to severe falls in price, and in the event of bankruptcy, bond owners may be paid something, while shareholders will receive nothing.
When a company raises finance from the primary market, the process is more likely to involve face-to-face meetings than other capital market transactions. Whether they choose to issue bonds or shares, companies will typically enlist the services of an investment bank to mediate between themselves and the market. A team from the investment bank often meets with the company's senior managers to ensure their plans are sound. The bank then acts as an underwriter, and will arrange for a network of brokers to sell the bonds or shares to investors. This second stage is usually done mostly through computerized systems, though brokers will often phone up their favored clients to advise them of the opportunity. Companies can avoid paying fees to investment banks by using a direct public offering, though this is not a common practice as it incurs other legal costs and can take up considerable management time.

Secondary market trading

 

An electronic trading platform being used at the Deutsche Börse. Most 21st century capital market transactions are executed electronically; sometimes a human operator is involved, and sometimes unattended computer systems execute the transactions,   as happens in algorithmic trading.

Most capital market transactions take place on the secondary market. On the primary market, each security can be sold only once, and the process to create batches of new shares or bonds is often lengthy due to regulatory requirements. On the secondary markets, there is no limit to the number of times a security can be traded, and the process is usually very quick. With the rise of strategies such as high-frequency trading, a single security could in theory be traded thousands of times within a single hour. Transactions on the secondary market do not directly raise finance, but they do make it easier for companies and governments to raise finance on the primary market, as investors know that if they want to get their money back quickly, they will usually be easily able to re-sell their securities. Sometimes, however, secondary capital market transactions can have a negative effect on the primary borrowers: for example, if a large proportion of investors try to sell their bonds, this can push up the yields for future issues from the same entity. An extreme example occurred shortly after Bill Clinton began his first term as President of the United States; Clinton was forced to abandon some of the spending increases he had promised in his election campaign due to pressure from the bond markets . In the 21st century, several governments have tried to lock in as much as possible of their borrowing into long-dated bonds, so they are less vulnerable to pressure from the markets. Following the financial crisis of 2007–08, the introduction of quantitative easing further reduced the ability of private actors to push up the yields of government bonds, at least for countries with a central bank able to engage in substantial open market operations.

A variety of different players are active in the secondary markets. Individual investors account for a small proportion of trading, though their share has slightly increased; in the 20th century it was mostly only a few wealthy individuals who could afford an account with a broker, but accounts are now much cheaper and accessible over the internet. There are now numerous small traders who can buy and sell on the secondary markets using platforms provided by brokers which are accessible via web browsers. When such an individual trades on the capital markets, it will often involve a two-stage transaction. First they place an order with their broker, then the broker executes the trade. If the trade can be done on an exchange, the process will often be fully automated. If a dealer needs to manually intervene, this will often mean a larger fee. Traders in investment banks will often make deals on their bank's behalf, as well as executing trades for their clients. Investment banks will often have a division (or department) called "capital markets": staff in this division try to keep aware of the various opportunities in both the primary and secondary markets, and will advise major clients accordingly. Pension and sovereign wealth funds tend to have the largest holdings, though they tend to buy only the highest grade (safest) types of bonds and shares, and some of them do not trade all that frequently. According to a 2012 Financial Times article, hedge funds are increasingly making most of the short-term trades in large sections of the capital market (like the UK and US stock exchanges), which is making it harder for them to maintain their historically high returns, as they are increasingly finding themselves trading with each other rather than with less sophisticated investors.
There are several ways to invest in the secondary market without directly buying shares or bonds. A common method is to invest in mutual funds or exchange-traded funds. It is also possible to buy and sell derivatives that are based on the secondary market; one of the most common type of these is contracts for difference – these can provide rapid profits, but can also cause buyers to lose more money than they originally invested.

Forecasting and analyses

A great deal of work goes into analysing capital markets and predicting their future movements. This includes academic study; work from within the financial industry for the purposes of making money and reducing risk; and work by governments and multilateral institutions for the purposes of regulation and understanding the impact of capital markets on the wider economy. Methods range from the gut instincts of experienced traders, to various forms of stochastic calculus and algorithms such as Stratonovich-Kalman-Bucy filtering algorithm.

                                Capital controls

                              

Capital controls are measures imposed by a state's government aimed at managing capital account transactions – in other words, capital market transactions where one of the counter-parties^[g] involved is in a foreign country. Whereas domestic regulatory authorities try to ensure that capital market participants trade fairly with each other, and sometimes to ensure institutions like banks do not take excessive risks, capital controls aim to ensure that the macroeconomic effects of the capital markets do not have a negative impact. Most advanced nations like to use capital controls sparingly if at all, as in theory allowing markets freedom is a win-win situation for all involved: investors are free to seek maximum returns, and countries can benefit from investments that will develop their industry and infrastructure. However, sometimes capital market transactions can have a net negative effect: for example, in a financial crisis, there can be a mass withdrawal of capital, leaving a nation without sufficient foreign-exchange reserves to pay for needed imports. On the other hand, if too much capital is flowing into a country, it can increase inflation and the value of the nation's currency, making its exports uncompetitive. Countries like India employ capital controls to ensure that their citizens' money is invested at home rather than abroad.


           
                     
   
                          US Capital Wiring Diagram ( sensor and Transducer )



             
      



    
                               Development of e- Markets



A satisfactory pace of economic growth in any economy is contingent upon availability of adequate capital. A well-developed securities market, while acting as a provider of funding for economic activity at the macro level, plays specific roles in an economy: it diffuses stress on the banking sector by diversifying credit risk across the economy, supplies funds for long-term investment needs of the corporate sector, provides market-based sources of funds for meeting the government’s financing requirements, provides products with the 
flexibility to meet the specific needs of investors and borrowers, and allocates capital more efficiently.The main impulse for developing securities markets, including both the equity and debt segments, depends on country-specific histories and, more specifically in the context of the financial system, it relates to creating more complete financial markets, preventing banks from taking on excessive credit, risk diversification in the financial system, financing government debt, conducting monetary policy, sterilizing capital inf lows, and providing a range of long-term assets. Prior to the early 1990s, most financial markets in India faced pricing controls, entry barriers, transaction restrictions, high transaction costs, and low liquidity. A series of reforms since the early 1990s have aimed to develop the various segments of financial markets by phasing out the administered pricing system; removing barrier restrictions; introducing new instruments; establishing an institutional framework; upgrading the technological infrastructure; and evolving efficient, safe, and more transparent market practices . 

Capital markets have historically played an important role in channeling long-term resources for commerce and industry in many countries, such as the United States and the United Kingdom, whereas in some other countries, including Japan and Germany, corporate investments are largely financed through intermediary-based sources.
Traditionally, however, the financial system since independence has been based on financial intermediaries rather than capital markets. Given the developmental needs of the country in the past and the inability of the markets to generate and allocate funds effectively for long-term development projects, the bank-based financial system best suited the country’s needs.

however, the growing needs of the economy and the forces of liberalization changed the face of the financial system drastically, and the capital markets assumed a prominent place in the resource allocation process of the economy. In recent years, the financial system seems to be gradually maturing to a point at which both the intermediary- and market-based systems coexist, thus drawing the benefits of both systems. 

                                  Access Electronic Technology in The market

1. Technology has played an important role in changing market practices in the world . The  stock markets have moved away from open outcry system to an online electronic trading system, in line with best international practices. The electronic system has improved efficiency in the price discovery mechanism, lowered transaction costs, promoted transparency in transactions, and helped improve integration across stock exchanges throughout the country. 

2. Trading securities in physical form slows down transactions, adversely affecting the liquidity of the markets, increasing trading costs, and also contributing to problems relating to bad deliveries, theft, and forgery. Compulsory de materialization has resulted in the overwhelming majority of securities being traded in electronic form.

3. Technology has also enabled faster movement of funds across the country. Electronic funds transfer, combined with de materialization of securities, has created an environment conducive to the reduction of settlement cycles on the stock markets. Shorter settlement cycles reduce the risk involved in transactions and speculative activity, and infuse more liquidity into the markets. In addition to their effect on trading, the technological developments have made their mark in the clearing and settlement process, paving the way for efficient and sophisticated systems. 


4. On the instrument side, derivative instruments ( Timer Instrument ) , such as index futures, stock futures, index options, and stock options, have become important instruments of price discovery, portfolio diversification, and risk hedging. Various risk-containment measures, including mar-gins, positions, and exposure limits, are in place to ensure smooth functioning of the derivatives market.

            
   
                                       


            electronics circuit sample of  derivative instruments ( Timer Instrument )



5. the international capital markets through the use of various instruments, such as American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), foreign currency convertible bonds, and External Commercial Borrowings. ADRs and GDRs have two-way fungibility, meaning that investors (foreign institutional or domestic) in any company that has issued ADRs and GDRs can freely convert the ADRs and GDRs into underlying domestic shares, and vice versa.This is expected to improve liquidity in the markets and eliminate arbitrage between domestic and international markets.



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                                     The second Triangle Market : Money Market



There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.

Money market funds are mutual funds, which means that the money you contribute is invested in assets. The law requires that money market funds be invested in low-risk securities such as government bonds and commercial paper.

Types Of Money Market Instruments

• Treasury Bills (T-Bills) Issued by the Central Government, Treasury Bills are known to be one of the safest money market instruments available. ...
• Certificate of Deposits (CDs) ...
• Commercial Papers (CPs) ...
• Repurchase Agreements (Repo) ...
• Banker's Acceptance (BA)

The examples of money market : This includes assets such as certificates of deposit (CDs), interbank loans, money market funds, Treasury bills (T-bills), repurchase agreements, commercial paper, and short-term securities loans.

the main Components of Money Market

• Central Bank: It is naturally to be the leader of all banks. ...
• Commercial Banks: They play a vital role in the money market. ...
• Discount Houses: Discount houses are special institutions for rediscounting the bills of exchange. ...
• Acceptance Houses: ...
• Bill Brokers: ...
• Money Market. ...
• Merits. ...
• Demerits.

However, money market accounts generally offer better interest rates and different withdrawal options than savings or checking accounts. ... Money market account portfolios often invest in more liquid, short-term investments. And, as an added bonus, money market accounts are FDIC-insured - so risk is minimal.

the characteristics of a money market :

In addition, money market instruments generally have the following two characteristics: Liquidity -- Money market instruments are liquid investments, which means that they can readily be bought and sold for stable prices. 

the features of money market :

Some of the main features of a Money Market are as follows:

Transactions of money market include lending and borrowing of cash for a short period of time and also sale and purchase of securities having one year term or which gets redeemed (paid back) within one year period.

Institutions of the Money Market:

• Central Bank: The central bank of the country is the pivot around which the entire money market revolves. ...
• Commercial Banks: ...
• Non-bank Financial Intermediaries: ...
• Discount Houses and Bill Brokers: ...
• Acceptance Houses: ...
• Promissory Note: ...
• Bill of Exchange or Commercial Bills: ...
• Treasury Bill:

Definition of 'Money Market'

Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers. ... It is used by the participants as a way of borrowing and lending for the short term

the five features of money :

The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let's compare two examples of possible forms of money: A cow. 

Objectives of Money Market. The following are the important objectives of a money market: To provide a parking place to employ short-term surplus funds. To provide room for overcoming short-term deficits

some examples of money market : This includes assets such as certificates of deposit (CDs), interbank loans, money market funds, Treasury bills (T-bills), repurchase agreements, commercial paper, and short-term securities loans.

The Four Different Types of Money

• Commodity Money. Commodity money is the simplest and most likely also the oldest type of money. ...
• Fiat Money. Fiat money gets its value from a government order (i.e. fiat). ...
• Fiduciary Money. ...
• Commercial Bank Money. ...
• In a Nutshell.

 Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account. Medium of exchange. Money's most important function is as a medium of exchange to facilitate transactions.

Money serves four basic functions: it is a unit of account, it's a store of value, it is a medium of exchange and finally, it is a standard of deferred payment.

Money Market Functions

The important functions of Money market are: Maintaining money related equilibrium i.e. to maintain a balance between supply of and demand for money for transactions that are done for a short period. Money market promotes the growth and development of the economy.

 Money markets instruments are needed: (1) To bridge the gap between the receipt of funds and the expenditure of funds. (2) Because idle cash is expensive (cash balances earn no income for the owner), they provide an opportunity for investors to earn a return.

 A money market account works much the same as other bank accounts. ... Then, your money will earn interest at a variable rate, which means it can go up or down over a period of time. You can access your funds with checks or a debit card within federal transaction limits.

Buying and Tracking Money Market Funds. Buy into a money market fund. Your online brokerage or other services (such as mutual fund companies) will help you invest a specific amount of money into money market funds by writing a check or making an online transfer.

Some of the main features of a Money Market are as follows:

Transactions of money market include lending and borrowing of cash for a short period of time and also sale and purchase of securities having one year term or which gets redeemed (paid back) within one year period.

There are three types of money recognized by economists - commodity money, representative money, and also fiat money.

• Money that's in the form of a commodity with intrinsic value is considered commodity money.
• Representative money is not money itself, but something that represents money.

modern form of money : In the modern monetary systems, there are three forms of money in actual use: (i) Metallic Money, (ii) Paper Money, and (iii) Credit Money. The first two kinds of money are in the form of currency money and the last one is credit or bank money.

the 6 characteristics of money : 6 Characteristics of Money for Business Success. The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.

the 5 characteristics of money :

There have been many forms of money in history, but some forms have worked better than others because they have characteristics that make them more useful. The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. 

he following points highlight the top six functions of money.

• Function # 1. A Medium of Exchange: ...
• Function # 2. A Measure of Value: ...
• Function # 3. A Store of Value (Purchasing Power): ...
• Function # 4. The Basis of Credit: ...
• Function # 5. A Unit of Account: ...
• Function # 6. A Standard of Postponed Payment: 

 The purpose of money economics ;

Economists, however, have a language all their own when it comes to money. They define it as something that serves as a medium of exchange, a unit of accounting, and a store of value. Money is a medium of exchange in the sense that we all agree to accept it in making transactions.

Money is any good that is widely accepted in exchange of goods and services, as well as payment of debts. Most people will confuse the definition of money with other things, like income, wealth, and credit . 

we need money economics?Medium of exchange: The most important function of money is that it acts as a medium of exchange. Money is accepted freely in exchange for all other goods. Barter system is very inconvenient. ... So we can measure the value of a good by the money we pay for it . 

Objectives of Money Market. The following are the important objectives of a money market: To provide a parking place to employ short-term surplus funds. To provide room for overcoming short-term deficits. 

The characteristics of money market :

In addition, money market instruments generally have the following two characteristics: Liquidity -- Money market instruments are liquid investments, which means that they can readily be bought and sold for stable prices.

the two modern forms of money : In the modern monetary systems, there are three forms of money in actual use: (i) Metallic Money, (ii) Paper Money, and (iii) Credit Money. The first two kinds of money are in the form of currency money and the last one is credit or bank money.

When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the "coincidence of wants" problem. Money's most important usage is as a method for comparing the values of dissimilar objects.

 The value of any good is determined by its supply and demand and the supply and demand for other goods in the economy. A price for any good is the amount of money it takes to get that good. Inflation occurs when the price of goods increases—in other words when money becomes less valuable relative to those other goods . 

the disadvantages of commodity money ;

Indivisibility, perishability, tendency to fluctuate erratically and variations in quality are some disadvantages of commodity money. Commodity money is any form of currency that can serve another purpose apart from its use as money. ... Another disadvantage of commodity money is that it may vary in quality.

          

                        Money Market

What Is the Money Market?

The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders. At the retail level, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

 

Key Takeaways

• The wholesale money market involves the purchase and sale in large volumes of short-term debt products.
• An individual may invest in the money market by purchasing a money market mutual fund, buying a Treasury bill, or opening a money market account at a bank.
• Money market investments are characterized by safety and liquidity. 

On the widest scale, the money market is one of the pillars of the global financial system and involves overnight swaps of vast amounts of money between banks and the U.S. government.

In all cases, they are low-risk investments that have maturities ranging from overnight to just under one year. That short life makes them almost as liquid as cash. That is, the principal is safe and the money is not inaccessible for long. 


The money market is defined as dealing in debt of less than one year. The borrowers keep their cash flows steady, and the lenders make a modest profit.

Money Market Funds

The wholesale money market is limited to companies and financial institutions that lend and borrow in amounts ranging from $5 million to well over $1 billion per transaction.

Mutual funds offer baskets of these products to individual investors. The net asset value (NAV) of such funds is intended to stay at $1. During the 2008 financial crisis, one fund fell below that level. That triggered market panic and a mass exodus from the funds, which ultimately led to additional restrictions on their access to riskier investments.

Money Market Accounts 

Money market accounts are a type of savings account. They pay interest, but some issuers offer account holders limited rights to occasionally withdraw money or write checks against the account. (Withdrawals are limited by federal regulations. If they are exceeded, the bank promptly converts it to a checking account.)

Banks typically calculate interest on a money market account on a daily basis and make a monthly credit to the account.

Average interest rates for money market accounts vary based on the amount deposited. As of mid-2019, the best-paying money market account with no minimum deposit offered 2.25% annualized interest. The best with a minimum deposit of $10,000 paid $2.45%.

Funds in money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC) at banks and the National Credit Union Administration (NCUA) in credit unions.

In general, money market accounts offer slightly higher interest rates than standard savings accounts. But the difference in rates between savings and money market accounts has narrowed considerably since the 2008 financial crisis.

Certificates of Deposit

Most certificates of deposit are not strictly money market funds because they are sold with terms of up to 10 years. However, CDs with terms as short as three months to six months are available.

As with money market accounts, bigger deposits and longer terms yield better interest rates. Rates in mid-2019 for six-month CDs ranged from about 0.02% to 0.65% depending on the size of the deposit.

Unlike a money market account, the rates offered with a CD remain constant for the deposit period. There is a penalty associated with early withdrawal of funds deposited in a CD.

Commercial Paper

This is where we get into the professional market for institutions and traders who deal in large-volume transactions. The commercial paper market is for buying and selling unsecured loans for corporations in need of a short-term cash infusion. Only highly creditworthy companies participate, so the risks are low.

Banker's Acceptances

Another professional money market trade, the banker's acceptance is a short-term loan that is guaranteed by a bank. Used extensively in foreign trade, a banker's acceptance is like a post-dated check and serves as a guarantee that an exporter can pay for the goods. There is a secondary market for buying and selling banker's acceptances at a discount.

Eurodollars

These are not to be confused with the euro currency. Eurodollars are dollar-denominated deposits held in foreign banks and thus not subject to Federal Reserve regulations. Very large deposits of eurodollars are held in banks in the Cayman Islands and the Bahamas. Money market funds, foreign banks, and large corporations invest in them because they pay a slightly higher interest rate than U.S. government debt.

Repos

The repo, or repurchase agreement, is part of the overnight lending money market. Treasury bills or other government securities are sold to another party with an agreement to repurchase them at a set price on a set date.

Money Market vs. Capital Market

The money market is defined as dealing in debt of less than one year. It is a means for governments and corporations to keep their cash flow steady, and for investors to make a modest profit.

The capital market is dedicated to the sale and purchase of long-term debt and equity instruments. The term encompasses the entire stock and bond markets. Certainly, anyone can buy and sell a stock in a fraction of a second these days. However, the company issued the stock for the purpose of raising money for its long-term operations. Its value fluctuates but it has no expiration date unless the company itself ceases to operate.


                           





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                                    The Third of Triangle Market : Labor Market 

Where can I find labour market information?

 Public libraries and many community agencies can help you find labor market information.


Labor market information can be overwhelming and confusing. Learning what it is and how to use it can help you find a job.

Labor market information tells you:

• What jobs and skills employers are looking for
• Which industries are hiring and where they are located
• Where to find employers who are hiring
• What working conditions are like for specific industries
• What education and training you need for specific jobs
• What factors can stop you from getting a job
• Which job areas are growing in the future and other statistics

Why do I need this information?

Labor market information can help you make a good decision when you want to change jobs or move to a new place. It can help you find out what the labor market is like for that job or that city. For example, if you are a machinist and you move to a town with no factories, you will have a hard time finding a job. Looking at labor market information before you move can help you make a good decision.

Labor Market Definitions

Labor market information covers the principal elements of the labour market and its operations. The principal elements are the demand for labour and the supply of labour. Demand means the number of jobs available. Supply tells you the number of people who are able work. This information is organized by:

• Time periods
• Sector
• Industries
• Geographic areas

The labor force is the number of people available to work. These numbers are broken down by:

• Age
• Gender
• Ethnic background
• Education level and skills

Unemployment happens when there are more people (who want to work) than jobs.
The operations of the labour market include:

• Labour exchange –searching for workers, offering people jobs, hiring activities, and separations (lay offs, firings, quitting)
• Government policies and activities – created to help reduce the number of people who do not have jobs.

 the major sources of government labor market information. Statistics watches unemployment numbers by:

• Region
• Age
• Sex
• Education level
• Unemployment rates by job type

        

                 Electronic Wage Payments

1)  What is an electronic wage payment?
An electronic wage payment is either:
(a)  an electronic funds transfer (“direct deposit”) into the employee’s financial institution (a bank or credit union) account with the employee’s pay; or
(b)  a debit card (“pay card”) issued to the employee, and which the employer deposits the amount of the employee’s pay.
2)  May employers pay wages in Montana using electronic funds transfers?
Employers may offer employees the option of electronic direct deposit of wages, but may not require that an employee select a form of electronic transfer of funds.  The employer needs the voluntary consent of the employee to provide electronic funds transfers.  The consent may either be in writing or via an electronic means.  The employer should be sure to keep a record of that consent.  Electronic payment of wages is an “opt in” proposition in province regulation , not an “opt out” where an employee has to affirmatively take steps to prevent electronic payment of wages.
3)  May an employer use a debit card (a “pay card”) to pay wages?
Yes, if all of the following conditions are met:
(a)  the employee has the option to receive the full amount of the wages via a check (or cash, if the employer prefers), without requiring the employee take extraordinary steps to obtain the check;
(b)  the employee consents to the use of the debit card;
(c)  the employer provides a clear understandable guideline identifying the charges associated with the use of the debit card;
(d)  the full amount of the wages can be accessed, in cash, without incurring a fee in the initial withdrawal; and
(e)  the employee receives (either in writing or electronically) an itemized list of the deductions and authorized with holdings from the wages.
4)  Does an employer comply with province law if the employer offers employees a choice between receiving wages either via an electronic funds transfer to a financial institution account or via a debit card?
No.  An employer cannot force an employee into accepting an electronic payment of wages.
5)  Does an employer comply with province law if the employee, as an alternative to being paid via a debit card or electronic funds transfer, can obtain authorization from the employer’s payroll processor to write out a paper paycheck payable to the employee?
No.  The Department of Labor and Industry believes that province law requires the employer to undertake the necessary steps to timely issue paychecks (or tender cash) to employees.  Nothing in district law appears to allow an employer to transfer the responsibility for issuing a paycheck to employees who are not otherwise responsible for payroll preparation functions.
6)  Are debit cards that are honored only at ATMs (automatic teller machines) an allowed form of wage payment in province?
No, unless the ATM can disburse the full amount of the wages in a single, no-fee withdrawal.  Because ATMs do not dispense odd amounts (no coins, no one dollar bills, etc.), an employer would have to “round up” the amount of the wages so that the full amount of the wages could be disbursed by the ATM.
7)  Does province have a requirement that if it offers debit cards as a wage payment option, there be a no-fee ATM within a certain maximum distance from the employee’s usual workplace?
No.  province law has not established a geographical proximity requirement for ATM access.  province allows employees the freedom to choose whether a debit card is a suitable way to receive wages without regards to machine access.  Employees who do not have a reasonably convenient way to access their wages are not likely to choose to use an electronic payment system such as a debit card.
8)  Can an employer use a wage payment method that imposes a fee or forfeiture if the employee does not cash, withdraw, or otherwise transfer the wages in a certain amount of time?
No.  province law does not authorize an employer to assess a fee or impose a forfeiture of wages simply because of a delay in the employee trying to obtain the funds.
9)  If an employee decides not to withdraw or transfer the full amount of wages in an initial transaction, may the bank or debit card issuer impose a fee for subsequent transactions?
Yes.  The amount of the per-transaction fee(s) should be disclosed to the employee at the time the employee authorized use of the electronic funds transfer.  The failure to make an appropriate disclosure of fees may invalidate the employee’s consent to participate in electronic fund transfers.
10)  What happens if an employee tries to use a debit card and the ATM network is temporarily not available due to computer or other technical problems?
A short, temporary, and infrequent disruption (of an hour or less) in accessing wages is typically only a minor inconvenience for the employee.  Service disruptions that are frequent or of more prolonged duration than an hour will likely cause greater inconvenience to the employee, and are more likely to generate a complaint to the Department of Labor and Industry.  Cases involving assertions of service disruptions that are tantamount to a delay in timely payment of wages are handled by the Department on a case-by-case basis.
11)  Can the employer or debit card issuer cancel or discontinue the use of the debit card?
Yes, but only with reasonable advance notice to the employee, and where there are reasonable means for the employee to withdraw all of the funds in the account.  A cancellation provision which purports to work a forfeiture of some or all of the employee's funds is not allowed.
12)  If an employee agrees to receive electronic wage payments, can the employee change her or his mind at a later date and go back to receiving a regular [non-electronic] paycheck?
Yes.  An employer must honor the change as promptly as is feasible, although it may take one or two pay cycles before the change becomes effective.
13)  What can an employee do if an employer is forcing the employee to select a form of electronic wage payment over the employee’s objection?
In most cases, employers will voluntarily comply with the law once the employer is made aware of the legal requirements.  An out-of-compliance employer may be subject to monetary penalties or legal action for improper payment of wages.

What Is the Job Market?

The job market is the market in which employers search for employees and employees search for jobs. The job market is not a physical place as much as a concept demonstrating the competition and interplay between different labor forces. It is also known as the labor market.

The job market can grow or shrink depending on the demand for labor and the available supply of workers within the overall economy. Other factors which impact the market are the needs of a specific industry, the need for a particular education level or skill set, and required job functions. The job market is a significant component of any economy and is directly tied in with the demand for goods and services.

The Job Market and the Unemployment Rate

The job market is also directly related to the unemployment rate. The unemployment rate is the percentage of people in the labor force who are not currently employed but actively seeking a job. The higher the unemployment rate, the greater the supply of labor in the overall job market.

When employers have a larger pool of applicants to choose from, they can be pickier or force down wages. Conversely, as the unemployment rate drops, employers are forced to compete more heavily for available workers. The competition for workers has the effect of increasing wages. Wages determined by the job market provide valuable information for economic analysts and those who set public policy based on the health of the overall economy.

During difficult economic times, unemployment tends to rise as employers may reduce their staffing numbers and create fewer new jobs, making it harder for people trying to find work. High rates of unemployment can prolong economic stagnation—a sustained period of little-to-no growth in an economy—and contribute to social upheaval, leading to the loss of opportunities for many individuals to live comfortably.

A report called the Current Population Survey can measure the state of the job market. It's a statistical survey performed every month by the U.S. Bureau of Labor Statistics. The study includes a representative sample of about 60,000 homes to try and determine the unemployment rate of specific regions, earnings of those surveyed, hours the respondents worked and many other demographic factors.

24.9%

The highest rate of unemployment in the U.S, which was documented in 1933.

Example of a Job Market

According to the U.S. Department of Labor, Bureau of Labor Statistics total employment for non-farm payrolls rose by 304,000 for January 2019, and the unemployment rate (a lagging indicator) bumped up to 4.0%. Industries such as leisure and hospitality, construction, health care, and transportation and warehousing all saw job gains during this time.

Key Takeaways

• Employers search for employees and employees search for jobs in the job market.
• The job market grows or shrinks based on demand for labor and the number of workers in the economy.
• The job market is directly related to the unemployment rate—a measure of the percentage of people who aren't employed but actively seeking work.

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                      Relationship money market and capital market with labor market


Money market and Capital market are types of financial market. Money markets are used for short-term lending or borrowing usually the assets are held for one year or less whereas, Capital Markets are used for long-term securities they have the direct or indirect impact on the capital.

A capital market is a component of a financial market that allows long-term trading of debt and equity-backed securities. ... Capital markets offer higher-risk investments, while money markets offer safer assets; money market returns are often low but steady, while capital markets offer higher returns.

some examples of money market : This includes assets such as certificates of deposit (CDs), interbank loans, money market funds, Treasury bills (T-bills), repurchase agreements, commercial paper, and short-term securities loans.

types of financial markets  :

• Stock market. The stock market trades shares of ownership of public companies. ...
• Bond market. ...
• Commodities market. ...
• Derivatives market. ...
• Puts savings into more productive use. ...
• Determines the price of securities. ...
• Makes financial assets liquid. ...
• Lowers the cost of transactions

The instruments of money market and capital market :

The financial instruments used in capital markets include stocks and bonds, but the instruments used in the money markets include deposits, collateral loans, acceptances, and bills of exchange. Institutions operating in money markets are central banks, commercial banks, and acceptance houses, among others

Types of financial markets

• Capital markets which consist of: ...
• Commodity markets, which facilitate the trading of commodities.
• Money markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management of financial risk.

Money market instrument meets short term requirements of the borrowers and provides liquidity to the lenders. The most common money market instruments are Treasury Bills, Certificate of Deposits, Commercial Papers, Repurchase Agreements and Banker's Acceptance.

Some examples of financial markets and their roles include the stock market, the bond market, and the real estate market. Financial markets can also be broken down into capital markets, money markets, primary markets, and secondary markets .

The financial market work :

How Investment Takes Place. A financial market is a place where firms and individuals enter into contracts to sell or buy a specific product such as a stock, bond, or futures contract. Buyers seek to buy at the lowest available price and sellers seek to sell at the highest available price.

A financial market is a market where buyers and sellers trade commodities, financial securities, foreign exchange, and other freely exchangeable items (fungible items) and derivatives of value at low transaction costs and at prices that are determined by market forces. 

There are four basic types of market structures: perfect competition, imperfect competition, oligopoly, and monopoly. Perfect competition describes a market structure, where a large number of small firms compete against each other with homogenous products. 

The four major types of business markets, and what are the characteristics of each? ANSWER: The four categories of business markets are producer, reseller, government, and institutional markets.

Key Customer Markets Consider the following key customer markets: consumer, business, global, and nonprofit. ... Business Markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. 

There are three major types of businesses:

• Service Business. A service type of business provides intangible products (products with no physical form). ...
• Merchandising Business. ...
• Manufacturing Business. ...
• Hybrid Business. ...
• Sole Proprietorship. ...
• Partnership. ...
• Corporation. ...
• Limited Liability Company.

The types of consumer market :

• Types of Consumer Markets. Business markets are defined by the buyers within them. ...
• Business to Business(B2B) ...
• Industrial. ...
• Professional Services. ...
• Financial Services. ...
• Business-to-government (B2G) ...
• Business to consumer market (B2C) ...
• Consumer to business C2B:- Consumer.

Classification of Market: Market refers to a system under which buyers and sellers negotiate the price of a product, settle the price, and transact their business. ... Therefore, markets need to be classified on the basis of various factors.


The four ways in which a business may be set up are: Sole Proprietorship, Partnership, Corporation, and Limited Liability Company or LLC. 1. Sole Proprietorship – This is the most simple business entity there is. As the name implies, the establishment has just one owner.

Four main types of corporations are designated as C, S, limited liability companies, and nonprofit organizations.

Below are basic summaries of the main types of business partnerships.

• General Partnerships. A general partnership involves two or more owners carrying out a business purpose. ...
• Limited Partnerships. ...
• Limited Liability Partnerships (LLP) ...
• Get Legal Help Before Setting Up Your Partnership.

The four types of consumers in ecology are herbivores, carnivores, omnivores, and decomposers. Herbivores are consumers who only eat vegetables, plants, grass, or some type of vegetation.

 Consumer market: Consumer markets are systems that allow consumers to make purchases or products or services. The power within a consumer market in the hands of the consumer. ... For example, when you buy tickets to a concert you are purchasing a service and not a product.

 A consumer market is a marketplace consisting of household consumers who buy goods for individual or family consumption. It is different than a business market, in which businesses sell goods and services to other companies.

Types of Buyers and their Characteristics. Buyer types fall into three main categories: spendthrifts, average spenders, and frugalists.

The business market is defined as the selling of products and services to other businesses to be resold or used to make other items or services for sale. An example of a business market is selling wood to a company to use in creating its products.

Essential characteristics of a market are as follows:

• One commodity: ADVERTISEMENTS: ...
• Area: In economics, market does not refer only to a fixed location. ...
• Buyers and Sellers: ...
• Perfect Competition: ...
• Business relationship between Buyers and Sellers: ...
• Perfect Knowledge of the Market: ...
• One Price: ...
• Sound Monetary System:

Market structure is best defined as the organisational and other characteristics of a market. We focus on those characteristics which affect the nature of competition and pricing – but it is important not to place too much emphasis simply on the market share of the existing firms in an industry.

organizational market. all the individuals and companies who purchase goods and services for some use other than personal consumption. Organizational markets usually have fewer buyers but purchase in far greater amounts than consumer markets, and are more geographically concentrated.

factor market and product market ;

In economics, a factor market is a market where factors of production are bought and sold, such as the labor market, the physical capital market, the market for raw materials, and the market for management or entrepreneurial resources. ... Production is the transformation of inputs into final products.

Four Types of Business Ownership

• Types of Ownership. Each type of ownership functions differently and places you in a slightly different role within the company. ...
• Sole Proprietorship. Perhaps the most basic type of business entity is the sole proprietorship. ...
• Partnership. ...
• Limited Liability Company. ...
• Corporation. ...
• Choosing the Right Option.

The Five Small Business Owner Structures. ... The type of business structure determines which income tax return form you file, and may impact how you structure health benefits for yourself (the owner), your family, and your employees. The five small business owner structures are: Sole Proprietorships

Three Types Of Corporations. In the United States, there are three major types of corporation – the C corporation, the S corporation and the limited liability company (which is technically not a corporation, but close enough for our discussion.) 

the 3 types of business entities :

Generally speaking, there are three basic types of legal entities in which business can be conducted: (1) sole proprietorship, (2) partnership, and (3) corporation.

There are four types of consumer products, and they are convenience, shopping, specialty, and unsought. Convenience products are low cost, routine, low involvement, wide target market, and easily available.

The difference between the consumer market and business market : Business buyers are people, too. ... The source of these differences is the complex and interdependent relationships between business buyers and sellers and their relative positions in the supply chain. Consumer marketing sells products to individual consumers and households who purchase for their own consumption.


Key Customer Markets Consider the following key customer markets: consumer, business, global, and nonprofit. ... Business Markets Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings.

 Consumer market characteristics can also be psychographic in nature. Psychographic characteristics of consumers include interests, activities, opinions, values and attitudes. Obviously, many magazines are geared toward a consumer's interest.

Market demand :

Definition: Market demand is the total amount of goods and services that all consumers are willing and able to purchase at a specific price in a marketplace. In other words, it represents how much consumers can and will buy from suppliers at a given price level in a market.

TYPES OF WHOLESALERS. Although there are a number of ways to classify wholesalers, the categories used by the Census of Wholesale Trade are employed most often. The three types of wholesalers are 1) merchant wholesalers; 2) agents, brokers, and commission merchants; and 3) manufacturers' sales branches and offices.

Features of a Perfectly Competitive Market

• Free and Perfect Competition: In a perfect market, there are no checks either on the buyers or sellers. ...
• Cheap and Efficient Transport and Communication: ...
• Wide Extent: ...
• Large number of firms: ...
• Large number of buyers: ...
• Homogeneous Product: ...
• Free entry and exit: ...
• Perfect knowledge: 

Features of market economy

• No governmental intervention: In market economy, government is facilitator not doer. ...
• Market led: The economy is led by market. ...
• Consumer's sovereignty: In market economy, consumers are sovereign. ...
• Personal freedom and motives: ...
• Personal property: ...
• Perfect competition: 

 the types of entity : State governments in the U.S. recognize more than a dozen different business entity types, but the average small business owner chooses between these six: sole proprietorship, general partnership, limited partnership (LP), limited liability company (LLC), C-corporation, and S-corporation. 


The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points. For example, at $10/latte, the quantity demanded by everyone in the market is 150 lattes per day. 


The market demand for a good describes the quantity demanded at every given price for the entire market. Remember that the entire market is made up of individual buyers with their own demand curves. This means that the market demand is the sum of all of the individual buyer's demand curve.

Market potential is a quantitative estimate of the total possible sales by all firms selling the same product in a given market. ... It refers to that part of the market demand that will materialize with the level of marketing effort the industry will put in during the period of the forecast .

calculate demand for a product :

buyers times the quantity of your product acquired per buyer in a given period. Market value is market volume times the average price per unit. calculate the number of buyers or the quantity they will buy in a given period. That is where the art and the science of demand calculation comes in.

The market demand curve is the summation of all the individual demand curves in a given market. It shows the quantity demanded of the good by all individuals at varying price points. For example, at $10/latte, the quantity demanded by everyone in the market is 150 lattes per day.

Market measurement and forecasting : Introduction Market measuring and forecasting requires an analysis of the market with an aim of expressing it in quantitative (numeric) quantities both present and in the future.The quantitative measurement and forecasting of the market, together with its qualitative characteristics, are used as a basis for decision

Market demand describes the demand for a given product and who wants to purchase it. This is determined by how willing consumers are to spend a certain price on a particular good or service. As market demand increases, so does price. When the demand decreases, price will go down as well.

Calculate market share for a new product?

Steps

1. Determine the period you want to examine for each company you are investigating. ...
2. Calculate the company's total revenue (also called total sales). ...
3. Find the total market sales. ...
4. Divide the target company's total revenue by the entire industry's total market sales.

Market demand schedule show :

In economics, a market demand schedule is a tabulation of the quantity of a good that all consumers in a market will purchase at a given price. ... Generally, there is an inverse relationship between the price and the quantity demanded. The graphical representation of a demand schedule is called a demand curve.

The market supply is the total quantity of a good or service all producers are willing to provide at the prevailing set of relative prices during a defined period of time. The market supply is the sum of all individual producer supplies.

Quantity demanded is a term used in economics to describe the total amount of goods or services demanded at any given point in time. It depends on the price of a good or service in the marketplace, regardless of whether that market is in equilibrium.

 A market forecast is a core component of a market analysis. It projects the future numbers, characteristics, and trends in your target market. A standard analysis shows the projected number of potential customers divided into segments.

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations.

What Is Market Demand Analysis?

1. Market Identification. The first step of market analysis is to define and identify the specific market to target with new products or services. ...
2. Business Cycle. Once a potential market is identified, companies will assess what stage of the business cycle the market is in. ...
3. Product Niche. ...
4. Growth Potential. ...
5. Competition.

 In its standard form a linear demand equation is Q = a - bP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as a function g of quantity demanded: P = f(Q). ... To derive MC the first derivative of the total cost function is taken.

7 Important Kinds of Demand – Explained!

• Price demand: Price demand refers to the different quantities of the commodity or service which consumers will purchase at a given time and at given prices, assuming other things remaining the same. ...
• Income demand: ...
• Cross demand: ...
• Direct demand: ...
• Derived demand or Indirect demand: ...
• Joint demand: ...
• Composite demand:

 Market share represents the percentage of an industry, or a market's total sales, that is earned by a particular company over a specified time period. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period.

 A company's market share is its sales measured as a percentage of an industry's total revenues. You can determine a company's market share by dividing its total sales or revenues by the industry's total sales over a fiscal period. Use this measure to get a general idea of the size of a company relative to the industry.

The market supply curve is obtained by adding together the individual supply curves of all firms in an economy. As the price increases, the quantity supplied by every firm increases, so market supply is upward sloping. A perfectly competitive market is in equilibrium at the price where demand equals supply.

The different types of forecasting :

While there are a wide range of frequently used quantitative budget forecasting tools, in this article we focus on the top four methods: (1) straight-line, (2) moving average, (3) simple linear regression, and (4) multiple linear regression.

Forecasting Product Demand

Forecasting demand for a product is a form of sales prediction. ... Predicting demand requires detailed sales figures from the current market as well as numbers from previous years. Gauging future demand without previous sales figures to make informed projections is difficult, but not impossible.

 Potential market is the part of the total population that has shown some level of interest in buying a particular product or service. This includes individuals, firms and organizations. Potential market is also called Total addressable market (TAM). Potential Risk.

 Market Analysis Include: The market analysis section of your small business plan should include the following: Industry Description and Outlook: Detailed statistics that define the industry including size, growth rate, trends, and outlook.

  

7 elements of marketing : 

Seven elements used in marketing mix for service are as follows: (1) Product (2) Price (3) Place (4) Promotion (5) People (6) Physical evidence (7) Process. The marketing concept dictates that marketing decisions should be based upon customer needs and wants.

Market Opportunity Analysis

A tool to identify and access the attractiveness of a business opportunity. It is a part of the business planning or strategy processes wherein before undertaking a new product or service, you analyze the market for it to determine probable profit and revenue from it. 

 

In its simplest form, to properly perform a market opportunity analysis there are five steps to follow:

1. Identify what's currently happening in the business environment. ...
2. Define the industry and determine the outlook. ...
3. Dive into the details of your competitors. ...
4. Describe your target market. ...
5. Create your projections.

 
Capital Market , the market where long term debt and equity securities issued and traded such as common stock, prefered stock, bond .
Money market , the market where the short term debt securities such as commercial paper, bankers acceptence, issued and traded .

Money Market - Short term credit needs of the business are fulfilled 
Capital Market -Long term credit needs of the business are fulfilled
Money Market - Time Period : Within a year 
Capital Market - Time Period : Over a year 

Money Market – Dealt through : Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit etc.

Capital Market - Dealt through : Shares, Debentures, Bonds etc.

Generally the periodic of Capital market : more than a year  Money market : les than a year

                                
                                               

Investors can tap into each of the markets depending on their needs. Capital markets are generally less liquid but provide good returns at higher risk whereas money markets are highly liquid but provide lower returns. Money markets are also considered safe assets.

                                                                      Labor Market

What is the Labor Market

The labor market, also known as the job market, refers to the supply and demand for labor in which employees provide the supply and employers the demand. It is a major component of any economy and is intricately tied in with markets for capital, goods and services.

BREAKING DOWN Labor Market

At the macroeconomic level, supply and demand are influenced by domestic and international market dynamics, as well as factors such as immigration, the age of the population and education levels. Relevant measures include unemployment, productivity, participation rates, total income and gross domestic product (GDP).

At the microeconomic level, individual firms interact with employees, hiring them, firing them and raising or cutting wages and hours. The relationship between supply and demand influences the hours the employee works and compensation she receives in wages, salary and benefits.

                 Example concept of Labor : The U.S. Labor Market

The macroeconomic view of the labor market can be difficult to capture, but a few data points can give investors, economists and policymakers an idea of its health. The first is unemployment. During times of economic stress, the demand for labor lags behind supply, driving unemployment up. High rates of unemployment exacerbate economic stagnation, contribute to social upheaval and deprive large numbers of people the opportunity to lead fulfilling lives.

In the U.S., unemployment was around 4% to 5% before the financial crisis, when large numbers of businesses failed, many people lost their homes, and demand for goods and services — and the labor to produce them — plummeted.

Labor productivity is another important gauge of the labor market and broader economic health, measuring the output produced per hour of labor. Productivity has risen in many economies, the U.S. included, in recent years due to advancements in technology and other improvements in efficiency.

In the U.S., however, growth in output per hour has not translated into similar growth in income per hour. Workers are creating more goods and services per unit of time, but not earning more compensation. Growth in the employment cost index averaged under 0.7% per year from 2001-2015, while growth in productivity exceeded 2%.

The Labor Market in Macroeconomic Theory 

According to macroeconomic theory, the fact that wage growth lags productivity growth indicates that supply of labor has outpaced demand. When that happens, there is downward pressure on wages, as workers compete for a scarce number of jobs and employers have their pick of the litter. Conversely, if demand outpaces supply, there is upward pressure on wages, as workers have more bargaining power and are more likely to be able to switch to a higher paying job, while employers must compete for scarce labor.

Some factors can influence labor supply and demand. For example, an increase in immigration to a country can grow the labor supply and potentially depress wages, particularly if newly arrived workers are willing to accept lower pay. An aging population can deplete the supply of labor and potentially drive up wages.

These factors don't always have such straightforward consequences, though. A country with an aging population will see demand for many goods and services decline, while demand for healthcare increases. Not every worker who loses his job can simply move into healthcare work, particularly if the jobs in demand are highly skilled and specialized, such as doctors. For this reason, demand can exceed supply in certain sectors, even if supply exceeds demand in the labor market as a whole.

Factors influencing supply and demand don't work in isolation, either. If it weren't for immigration, the U.S. would be a much older, and probably less dynamic society, so while an influx of unskilled workers might have exerted downward pressure on wages, it likely offset declines in demand.

Other factors influencing contemporary labor markets, and the U.S. labor market in particular, include: the threat of automation as computer programs gain the ability to do more complex tasks; the effects of globalization as enhanced communication and better transport links allow work to be moved across borders; the price, quality and availability of education; and a whole array of policies such as the minimum wage.

The Labor Market in Microeconomic Theory

Microeconomic theory analyzes labor supply and demand at the level of the individual firm and worker. Supply, or the hours an employee is willing to work, initially increases as wage increases. No workers will work voluntarily for nothing (unpaid interns are, in theory, working to gain experience and increase their desirability to other employers) and more people are willing to work for $20 an hour than $5 an hour.

Gains in supply may accelerate as wages increase, since the opportunity cost of not working additional hours grows. But supply may then decrease at a certain wage level: The difference between $1,000 an hour and $1050 is hardly noticeable, and the highly-paid worker who's presented with the option of working an extra hour or spending her money on leisure activities may well opt for the latter.

Common Reasons for a Shift in Labor Demand

• Changes in the marginal productivity of labor, such as technological advances brought on by computers
• Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock
• Changes in the price of an entity’s output, usually from an entity charging more for their product or service

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            Gen. Mac Tech Zone  e- Mo C - Lab (electronics of Money ; Capital ; Labor )

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