Chapter 5 - Chapter 5: The Financial Markets I. Financial...

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Chapter 5:  The Financial Markets I. Financial markets bring together those wanting to borrow  money with those having surplus funds.  They serve an  intermediaries that facilitate the movement of funds between  lenders and borrowers as well as between buyers and sellers.  Several different types of markets exist and can be classified as  follows: A. Physical Asset vs. Financial Asset Markets 1. Physical assets include computers, machinery, real  estate, and other tangible assets. 2. Financial assets include stocks, bonds, notes,  mortgages, and other claims on real assets. B. Spot vs. Futures Markets 1. Spot markets are markets where assets are bought or  sold for immediate delivery. 2. Futures markets are those in which participants agree  today to buy or sell an asset at some future date. C.
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This note was uploaded on 03/19/2008 for the course BUS 320 taught by Professor Sloan during the Spring '08 term at N.C. State.

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Chapter 5 - Chapter 5: The Financial Markets I. Financial...

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