the US government bond market and the NASDAQ (National Association of Securities Dealers Automated Quotation System) stock exchange. The NASDAQ is the second largest US market. Traditionally, it used to be a pure dealer market. Following controversies about dealer collusion, since 1997 public limit orders are allowed to compete with dealers. Market and limit orders can be entered onto the Small Order Execution System (SOES), which automatically routes market orders to the dealer quoting the best price. (Read Mishkin and Eakins (2009), pp.262–64 for more information on the NASDAQ.) Activity 2.11 Visit the Nasdaq web site at http://www.nasdaq.com/investorrelations/ir_home.stm and summarise the mission of Nasdaq. Money and capital markets On the basis of the maturity of the securities traded, a distinction between money and capital markets can be introduced. • Money markets are financial markets where only short-term debt instruments (maturity of less than one year) are traded. Money markets are mainly wholesale markets (large transactions) where
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This note was uploaded on 09/23/2009 for the course BUSI 101 taught by Professor Wormer during the Spring '08 term at Acton School of Business.