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Related Flashcards
Related Topics
Cards In This Set
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What are the 3 types of Financial Markets
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Money vs Capital Markets
Primary vs Secondary Markets
Organized vs Over the Counter Markets
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What are Money Markets
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Market that facilitates short-term funds (less than 1 year)
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What are Capital Markets
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Market that facilitates long-term funds (more than 1 year)
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What are primary markets
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Facilitates the trading of new securites
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What are secondary markets
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Facilitates the trading of existing securites
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What is organized exchange
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A trading floor where traders execute transactions in secondary markets
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What is over-the-counter markets
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Trading equities not listed on an organized exchange without the floor.
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What securities are traded in financial markets
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Money Market Securities
Capital Market Securities
Derivative Securities
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What are Money Market Securities
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Securities with maturity of less than a year.
Highly liquid
low return or risk
Examples are Treasury bills, commercial paper, and negotiable certificates of deposit
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What are Capital Market Securities
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Debt securites over 1 year
Examples are bonds, mortgages and stocks
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What are Derivative Securities
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Financial contracts whose values are derived from underlying assets. It allows speculation and risk management.
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Market pricing of securites is impacted by what information?
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Economic Conditions
Industry Conditions
Firm - specific Conditions
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Internet impacts market pricing by being
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More timely
more accurate
more informative
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What is market efficiency
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When security prices fully reflect all available information
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How are some ways market is regulated
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Disclosure
Regulatory Response to Financial Scandals
Other regulations
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