- any asset that has value in exchange.
Tangible or intangible.
9 – an option that grants the owner the right to buy a financial
option from another party.
5- The financial market for longer-maturity financial assets.
– A claim to a financial asset that has a fixed dollar amount
(not varying like equity).
Default risk (credit risk),3
- one of three types of risks, this is the one in which
the issuer or the borrower will default on his financial obligation.
Derivative Instrument, 9-
A type of contract whose price derives its value from
an asset at some future time.
Types include futures/forward contracts (obligatory)
and options (optional).
- one of two parts, along with foreign market, that make up
the national or internal market.
This is where issuers domiciled in a country issue
securities and where those securities are subsequently traded.
Equity instrument (residual claim),2
- a claim to a financial asset that obligates
the issuer of the financial asset to pay the holder an amount based on earnings
(international market, the offshore market, the Euromarket),8 –
with the internal market, makes up all financial markets.
securities with two features: 1- when issues, securities can be offered to investors
in multiple countries, 2- they are issued outside the jurisdiction of any one single
Financial asset (
intangible asset),2 – unlike tangible asset, derives its value not
from a physical property, but represent legal claims to some future benefit.
1- A part of the factor market (not product market).
market is for labor, capital, etc.