Financial Markets can be classified in different ways.

(A) On the Basis of Type of Financial Claim

1. Debt Market is the financial market for trading in Debt Instrument (i.e. Government Bonds or Securities, Corporate Debentures or Bonds). 

2. Equity Market is the financial market for trading in Equity Shares of Companies.

(B) On the Basis of Maturity of Financial Claim

1. Money Market is the market for short term financial claim (usually one year or less) E.g. Treasury Bills, Commercial Paper, Certificates of Deposit. 

2. Capital Market is the market for long term financial claim more than a year E.g. Shares, Debentures

(C) On the Basis of Time of Issue of Financial Claim 

1. Primary Market is a term used to include all the institutions that are involved in the sale of securities for the first time by the issuers (companies). Here the money from investors goes directly to the issuers.

2. Secondary Market is the, market for securities that are already issued. Stock Exchange is an important institution in the secondary market.

(D) On the Basis of Timing of Delivery of Financial Claim

1. Cash/Spot Market is a market where the delivery of the financial instrument and payment of cash occurs immediately, i.e. settlement is completed immediately. 

2. Forward or Futures Market is a market where the delivery of asset and payment of cash takes place at a pre-determined time frame in future.

(E) On the Basis of the Organizational Structure of the Financial Market 

1. Exchange Traded Market is a centralized organization (stock exchange) with standardized procedures.

2. Over-the-Counter Market is a decentralized market (outside the stock exchange), with customized procedures.