A STUDY ON INVESTOR’S PREFERNCE TOWARDS FINANCIAL SECURITIES

Abstract

This paper examines about the financial markets with special reference to money market and money market instruments such as Treasury bill, Certificates of deposits, Commercial papers, Commercial Bills and Short term securities. Money market generally deals with securities and instruments which have less maturity period which are not more than one year. Instruments of money market are also known as short term securities. These markets are highly liquid and they have instruments with 14 days to 1 year maturity period. Each instrument in money markets are closely related to each other so that it can function on the same financial market. Institution related to money market like central bank, commercial banks, discount houses and acceptance houses help in smooth flow of instruments and functions in a money market. In most of the cases the issuer or the lender of instruments are commercial banks and central bank apart from that even business entities also issues instruments like promissory notes. Thus a detailed view of it would be presented on the paper.