There are many ways to classify security markets. One way is by the type of financial claim, such as debt markets and equity markets. Debt market is market in which financial instruments dealing in outstanding debts are bought and sold. The New York bonds exchange is debt market equity market is market in which financial instruments dealing in outstanding equity are bought and sold.
Another is by the maturity of the claim. For example, money market and capital market. Money markets are the markets for short-term debt securities. Examples of money markets securities are treasury bills, banker’s acceptance, commercial paper and negotiable certificate of deposit issued by government, business and financial institutions. These instruments are very liquid and considered extraordinary safe. Because they are extremely conservative, money market securities offer significantly lower return than most other securities. Capital market is the market for long term loans and equity capital. Companies and the government can raise funds for long term investments via the capital market. The capital market includes the stock market, the bond market and the primary market.
Security markets can be categorized as those dealing with financial claims that are newly, called the primary market and those for exchanging financial claims previously issued, called the secondary market or the market for seasoned instruments.
A market can be classified by its organizational structure.
Another is by the maturity of the claim. For example, money market and capital market. Money markets are the markets for short-term debt securities. Examples of money markets securities are treasury bills, banker’s acceptance, commercial paper and negotiable certificate of deposit issued by government, business and financial institutions. These instruments are very liquid and considered extraordinary safe. Because they are extremely conservative, money market securities offer significantly lower return than most other securities. Capital market is the market for long term loans and equity capital. Companies and the government can raise funds for long term investments via the capital market. The capital market includes the stock market, the bond market and the primary market.
Security markets can be categorized as those dealing with financial claims that are newly, called the primary market and those for exchanging financial claims previously issued, called the secondary market or the market for seasoned instruments.
A market can be classified by its organizational structure.
No comments:
Post a Comment