Money markets and trading on negotiable instruments / Saadatul Nafisah Bashir

The tight liquidity position resulting from the current economic recession are faced by the Private Sectors as well the Bublic Sectors. These sectors are represented by individuals, companies, corporations, financial institutions, Banks, Statutory Bodies and other Government Agencies. Despite their tight liquidity position, surplus funds are still available for local investment eventhough with a slow investment pace in the current economy. The alternatives means of investment include investing in the stock exchange market or placement on deposit with Commercial and Merchant Banks, Financial Institutions and Discount Houses. Eventhough the stock market is undergoing a corrective phase in the early part of the year but due to many uncertain factors that are effecting these markets today, the prices of shares fluctuate daily. This, in return, will affect the investors' confidence in investing on shares since it will not help to maximise returns on investments. Deposits may be placed with a wide range of institutions such as Discount Houses, Commerical Bank, Licensed Financed Companies, Non Financial Institutions and Merchant Banks which offer, different ranges of interests.