Financial markets- Participants and types

Financial markets- Participants and types

Let's rememember some concepts within fianacial markets

Let's learn some new types of markets

Money market

Credit market

Equity market

The money market

Trading in very short-term debt investments.

In whole-sale, it means large-volume trades between institutions and traders.

In retail, it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.

The money market is usually very safe but with relatively low profit.

The credit market

The market that companies and governments use to make investors get into debts, such as investment-grade bonds, junk bonds, and short-term commercial paper.

Sometimes it is called the debt market.

It includes debt offerings, such as notes and securitized obligations and other typers.

Equity capital market

The equity capital market (ECM): where financial institutions help companies get equity capital and where stocks are traded.

It's the primary market for private placements, initial public offerings (IPOs), and warrants; and the secondary market, where shares are sold, as well as other listed securities are traded.

Multiple Choice

Core capital,  sovereign bonds, foreign exchange and commercial banks are all concepts related to:

• Buying and selling shares

• Financial markets

• Shares

Multiple Choice

A hedge is an investment that helps:

• Reduce risks with assets of problematic price changes.

• Get better profits

• Go into more convenient debts.

Multiple Choice

Liabilities are:

• A government's assets

• A company's financial obligations.

• A company's assets.

Multiple Choice

What's the correct pair?

• Private household

• Private crisis

• Private bonds

Multiple Choice

What's the correct pair?

• Core crisis

• Core household

• Core capital

Multiple Choice

What's the correct pair?

• Sovereign bond

• Sovereign market

• Sovereign exchange

Multiple Choice

A type of market where securities mature in less than one year. This is a:

• Long term market

• Short term market

• Debt market

Multiple Choice

It is a situation in which the value of financial institutions or assets drops rapidly. This is a:

• Private household

• Debt market

• Financial crisis.

Multiple Choice

The money market is usually very safe but with relatively low profit.

• TRUE

• FALSE

Multiple Choice

The money market permits companies, investors and governments go into debts.

• TRUE

• FALSE

Multiple Choice

The equity capital market is the central market for private placements, initial public offerings (IPOs), and warrants.

• TRUE

• FALSE

Multiple Choice

The loan a bank gives you to buy a house is called:

• Core capital

• Debts

• Mortgage

Multiple Choice

The income you get when you sell goods, and before you substract costs, is called

• Mortgage

• Revenue

• Arbitrager