IBT (Lesson 6-7)

This transfer mechanism provides an efficient way for those who wish to borrow or invest money to do so.

money that's borrowed and must be repaid

money that is invested in return for a percentage of ownership but is not guaranteed in terms of repayment.

where new securities are issued.

The vast majority of capital transactions takes place here.

represent ownership of a part of a company

represent a loan from the investor to a company or government entity.

The most common example of a debt instrument

the type of equity security with which most people are familiar.

basically means being able to convert a noncash asset into cash without losing any of the principal value.