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Unformatted text preview: Over-the-Counter Market: NASDAQ; hi-tech companies and young companies trade over the counter The aim of sellers and buyers is to get the best possible price Bond: a type of financial instrument that firms issue in exchange for cash; good and safe Junk bonds: Speculative; young companies or companies with too much debt US Bonds Munis: Municipal bonds Federal Reserve: America's central bank; they make sure that there is enough money to keep economy going, but not enough to cause inflation; control interest rates; stores gold Federal Funds Rate: the FED controls directly and it affects the Prime Rate The government issues Treasury Bills, Notes and Bonds Foreign Exchange: Largest market in the world, trades $650 billion Commodities: offsets market risks; Futures; an open-outcry trading market Hedgers: long term approach Speculators: short term approach...
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- Spring '99