Financial market and virtual currency

1.

1. The essence of interpretation is different:

virtual currency: virtual currency refers to non real currency

currency: currency (CCY) is the medium of purchasing goods and preserving wealth. It is the contract between the owner of property and the market about the right of exchange. In essence, it is the agreement between the owners

2. Different types:

virtual currency: game currency, special currency, etc.

currency: coin, paper currency, deposit currency, etc.

extended data:

formation of virtual currency market:

Internet leads to the emergence of a new market, which is a virtual market based on cyberspace. The Internet provides a lot of communication places for consumers, and also provides business market for enterprises. Enterprises must change from proct centered to service centered to customer centered

with the development of computer artificial intelligence technology and database technology, enterprises can conveniently collect customers' information, understand customers' needs in time, change business strategies and grasp economic arteries in real time

2. Virtual currency refers to non real currency. Well known virtual currency, such as network company's network currency, Tencent company's Q currency, Q point, Shanda company's voucher; The popular digital currencies in 2013 include bitcoin, Leyte coin, Fuyuan coin, doggy coin and so on
network virtual currency can be roughly divided into

the first category is familiar game currency. In the era of stand-alone games, the protagonist accumulates money by knocking down the enemy, entering the gambling house to win money, and using these to buy Herbs and equipment, but it can only be used in his own game console. At that time, there was no "market" between players. Since the establishment of Internet portal and community, the realization of game networking, virtual currency has a "financial market", players can trade game currency
the second type is the special currency issued by the portal website or instant messaging service provider, which is used to purchase the services in the website. The most widely used is Tencent's q-coin, which can be used to purchase membership, QQ show and other value-added services
the third kind of virtual currency on the Internet, such as bitcoin (BTC), Fuyuan coin (FTC), Wright currency (LTC), etc. bitcoin is an electronic currency proced by open-source P2P software. Some people also translate bitcoin as "bitcoin", which is a kind of network virtual currency. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new currency.

3.

Difference:

1. the money market mainly refers to the market where the term of capital loan is one year or less. It mainly includes: interbank lending, repurchase agreement, bill market, large amount transferable certificate of deposit market and short-term government bond market

2. capital market, also known as the long-term capital market, is a place to buy and sell medium and long-term credit instruments and realize long-term financing, which generally refers to the market with a loan period longer than one year. It can be divided into stock market, bond market, fund market, financial derivatives market and so on

3. financial market refers to the trading place for foreign exchange trading, or the exchange place for different currencies

< / OL >

connection: capital market and money market are collectively referred to as financial market

financial market is the financing market, which refers to the market in which both the fund supplier and the fund demander trade through credit instruments to obtain funds. Generally speaking, it is the market in which money lending and financing are realized, and various bills and securities trading activities are handled. The more perfect definition of financial market is: financial market is a mechanism of trading financial assets and determining the price of financial assets

The capital market is the market for the government, enterprises and indivials to raise long-term funds, including long-term loan market and long-term securities market. In the long-term loan, it is generally the consumer credit provided by banks to indivials; In the long-term securities market, there are mainly stock market and long-term bond market

the trading partners in the capital market are long-term securities with more than one year. Because in the long-term financial activities, it involves long-term capital, high risk, long-term stable income, similar to capital investment, so it is called capital market

one of the three components of financial market. A market for long-term capital transactions. Long term capital refers to the company's debt and shareholder's equity - stocks, which are used for fixed assets investment with repayment period of more than one year. It is in sharp contrast with the capital market that adjusts the surplus and shortage of funds of the government, companies or financial institutions

money market is a short-term capital market, which refers to the financial market with a financing term of less than one year and is an important part of the financial market. Because the financial instruments contained in the market are mainly short-term credit instruments issued by the government, banks and instrial and commercial enterprises, which have the characteristics of short term, strong liquidity and low risk. In the level of money supply, they are placed after cash currency and deposit currency, which is called "quasi currency", so the market is called "money market"



< H2 > extended data:


financial market refers to the general name of the places dealing in monetary fund borrowing, foreign exchange trading, securities trading, bond and stock issuance, gold and other precious metal trading. The combination of direct financial market and indirect financial market forms the whole financial market

financial markets can be classified from different perspectives:

according to the financing period, they can be divided into short-term financial market and long-term financial market. The short-term financial market is also called money market, including bill discount market, short-term deposit and loan market, short-term bond market and interbank market among financial institutions; Long term financial market is also called capital market, including long-term loan market and securities market

according to trading partners, it can be divided into local currency market (including money market and capital market), foreign exchange market, gold market, securities market, etc

financial market network

4. 1. Money market
first, give a definition of money market. Historically, the difference between money market and capital market is only time. Money market is less than one year and capital market is more than one year. However, many factors were added later. As the concept of money market graally matured, it became an important financial market with three factors of short-term, liquidity and risk. The comparative academic view is as follows:

1) the participants of the money market are the government, financial institutions, non-financial institutions, asset managers, indivials, etc.
2) the role of the money market is to exchange short-term capital surplus or shortage, manage the liquidity position of its assets, low-risk returns, etc.
3) it is characterized by large scale, short-term (within one year), low credit risk, low yield, etc Rich procts,
2.1) money market deposits,
money market deposits refer to "fixed" interest rate and "fixed" term deposits deposited in banks and securities companies. These deposits are signed, so they do not have liquidity in the secondary market before maturity. There are three directions of money market deposits, corresponding to three interest rates,
deposit and loan and deposit and loan interest rates. The real big head is RMB deposit and loan, that is, deposit and loan, one in and one out, which is the competition between banks and customers, and also the real business foundation and capital flow of banks. The corresponding interest rate is the benchmark interest rate of RMB loans and deposits of financial institutions, which is determined by the people's Bank of China. After the abolition of the deposit and loan interest rate limit, this interest rate is the reference interest rate in the strict sense. Strictly speaking, the deposit and loan business does not belong to the money market, but to the retail market. However, in order to make a comprehensive review, we have also brought it in
interbank offered rate and interbank offered rate. Another big head in the money market is interbank lending, that is, lending and borrowing, which is a rival game between banks and is also the main short-term capital flow of banks. The corresponding interest rate is the interbank offered rate, which is either formed by the firm offer transaction or quoted by the banking association. The interbank offered rate can be used as the reference rate (or benchmark rate) of other interest rates

5. Liquidity is not the same. The term of money market is within one year, and that of capital market is more than one year
as for why, the dominant factors are different in different liquidity and maturity markets
for example, the general money market is greatly affected by capital liquidity, and the capital market is more affected by economic fundamentals.

6. Financial market is divided into short-term financial market and long-term financial market according to term. Short term financial market, also known as money market, refers to the place where short-term (within one year) funds are specially financed. The financial instruments used are currency positions, certificates of deposit, bills and treasury bonds. The long-term financial market, also known as the capital market, refers to the market specialized in financing medium and long-term funds with a term of more than one year. The main financial instruments used are all kinds of securities, namely bonds and stocks.

7. Generally speaking,
financial markets can be classified as follows from different perspectives:
(1) according to geographical scope, they can be divided into:
① international financial markets are composed of financial institutions operating international monetary business, and their business contents include capital lending, foreign exchange trading, securities trading, capital trading, etc< (2) the domestic financial market is composed of domestic financial institutions, which handle various monetary, securities and other business activities. It can be divided into urban financial market and rural financial market, or into national, regional and local financial market
(2) according to the place of operation, it can be divided into:
① tangible financial market, which refers to the financial market with fixed place and operation facilities
② intangible financial market, a market existing in the form of operation network, achieves in trading by means of electronic telecommunication< (3) according to the term of financing transaction, it can be divided into:
① long term capital market (capital market), which mainly supplies medium and long-term capital for more than one year, such as the issuance and circulation of stocks and long-term bonds< (2) the short-term capital market (money market) is a market for short-term financing for less than one year, such as inter-bank lending, bill discount, short-term bonds and negotiable certificates of deposit< (4) according to the nature of the transaction, it can be divided into: (1) the issuing market, also known as the primary market, is the market for the issuance of new securities< (2) the circulation market, also known as the secondary market, is a trading market for securities that have been issued and are in circulation
(5) according to the trading partners, it can be divided into discount market, discount market, large amount certificate of deposit market, securities market (including stock market and bond market), foreign exchange market, gold market and insurance market< (6) according to the delivery period, it can be divided into:
① in the financial spot market, payment and delivery are made immediately after the transaction of financing activities
in the financial futures market, after the transaction of investment and financing activities, payment and delivery shall be made on the specified date according to the contract. Scientific and systematic division of financial market according to the above internal relations is the basis of effective management of financial market.

8.

Capital market, also known as long-term capital market, is an important part of financial market. As a theoretical concept corresponding to the money market, the capital market usually refers to the market where the medium and long-term (more than one year) capital (or assets) lending and financing activities are carried out. In the long-term financial activities, it involves long-term capital, high risk, long-term stable income, similar to capital investment, so it is called capital market

the difference between capital market and money market:

1. The characteristics of capital market are: the term of financial instruments traded is long; The purpose of transaction is to solve the problem; Determine the demand and supply of long-term investment funds; Large amount of capital borrowing and lending; Market trading tools have certain risks and risks; Speculative. Money market refers to the market with a term between and; 1  Short term financing through financial instruments within one year; The market. Its characteristics are: short trading term, strong liquidity, relatively low risk

2. Capital market is an important channel to raise funds and an effective place for rational allocation of resources. It is concive to enterprise restructuring. The money market adjusts the surplus and shortage of funds; Meet the needs of short-term financing. It not only creates conditions for the development of various forms of credit, but also provides a basis for policy regulation; Provide conditions and places

3. Different sub markets. In a broad sense, the capital market includes two parts: one is the bank's medium and long-term deposit and loan market, the other is the securities market, including the bond market and the stock market; Capital market in a narrow sense; It refers to the market that issues and circulates stocks, bonds, funds and other securities. The money market is dominant; It should be composed of sub markets such as inter-bank lending, commercial paper, treasury bonds and repurchase agreements

extended data:

the capital market has the following characteristics:

1. The term of trading instruments is long

the term of medium and long-term bonds is more than one year; A stock has no maturity and is a permanent security; The ration of closed-end funds is generally 15-30 years

The purpose of raising funds is to meet the needs of investment funds

in the capital market, long-term funds are raised, which are mainly used to supplement fixed capital and expand proction capacity, such as opening new enterprises, upgrading or expanding plant and equipment, and investment in long-term national construction projects

3. The scale of financing and transaction is large

generally, the scale of initial issuance or capital increase issuance of enterprises in the capital market is relatively large. Because the funds are used for medium and long-term investment, it is obviously larger than the scale of raising liquidity through bank loans

source: network capital market