The four types of financial markets are: Money market: The money market is where short-term debt securities, such as treasury bills, certificates of deposit, and commercial paper, are traded. The money market provides a means for companies, governments, and other organizations to borrow and lend money for short periods of time. Capital market: The capital market is where long-term securities, such as stocks, bonds, and other debt instruments, are traded. The capital market provides a means for companies, governments, and other organizations to raise funds for long-term investment projects. Derivatives market: The derivatives market is where financial instruments that derive their value from underlying assets, such as stocks, bonds, commodities, and currencies, are traded. Examples of derivatives include options, futures contracts, and swaps. Foreign exchange market: The foreign exchange market, also known as the forex market, is where currencies are bought and sold. It is the largest financial market in the world, with trillions of dollars traded every day. Each of these markets serves a different purpose and has its own unique characteristics, but they are all interconnected and can impact each other. Understanding the different types of financial markets can help investors and traders make informed decisions about where to invest their money.