Saturday, February 23, 2019
Finance reviewer – midterm
Types of Market 1 . sensible summation foodstuffs (also called tangible or real asset markets) vs. Financial asset markets Physical asset markers argon for products such as wheat, autos, real solid ground etc. Financial asset market deals with stocks, bonds, notes and mortgages. 2. Spot Market vs. coming(prenominal) Markets Spot markets argon markets in which assets are bought or sold on the spot. Future Markets are markets in which participants agree today to buy or sell an asset at some future date. 3.Money markets vs. pileus market Money markets are short term, highly liquid debt securities. Capital markets are for Intermediate or long term debt and corporate stocks. 4. Primary markets vs. supplemental markets primary are which corporate raise new seat of government. Secondary, which securities and other fiscal assets are traded among vectors after they have been issued by corporations. 5. nonpublic vs. globe Markets Private Markets, which transactions are worked ou t directly between 2 parties. Public Markets, which standardized contracts are traded on organized exchanges. CAPITAL MARKET Capital Markets A component of financial markets where long-term borrowing takes place ar arrests for buying and selling equity and debt instruments The Market where investment instruments like bonds and equities are traded (Maturity period) Lasts for more than 1 year and can also include life-time of a company New York Stock Exchange or NYSE is the near popular capital market It channel savings and Investments between suppliers of capital (such as retail Investors and Institutional Investors) and users of capital (Like business, government and Individuals) Suppliers of Capital Markets.