Classification of financial market participants.

  • Raising Money

    • Private sector institutions

      *   Financial Institutions
      

      Banks, trust companies, insurance companies and investment dealers will look to raise funds at a low cost in order to lend these funds on at a profit.

      • Non-Financial Corporations
        Other than financial institutions, non-financial corporations looking to expand either through acquisition or investment, will require funds for these purposes.

      • Governments
        Most governments will generate a deficit between revenue raised through general taxation, and expenditure on public services. There will also be a requirement for short-term cash and working capital. Additionally, a government may look to accumulate foreign currency reserves allowing intervention in the foreign-exchange market.

    • Supranational Entities
      There are a number of supranational entities such as the World Bank or the European Investment Bank (EIB), that lend money to projects or entities and require a method of raising funds.
  • Using Money

    • Fund Managers

      *   Investment trusts, mutual funds/unit trusts
      
      • Pension funds
      • Hedge funds

      • Corporations
        Not all corporations are looking to borrow money at all times. Sometimes, a corporation will have a cash surplus which it is looking to invest in short-term assets or equity markets.

    • Individuals
      Individual (retail) investors are increasingly choosing to make investments through mutual funds, ETFs and other pooled/collective investment vehicles.