This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: The determining factor is time. Money Market of investment or instrument of 1 year or less maturity Capital market is a market of investment or instrument of anything greater than 1 year. Bonds > 1 year Capital Market Stock > 1 year Capital Market Risk => Systematic/Systemic Risk, Non-Systematic/Non-Systemic Systemic Risk: Impacts whole economy, with no means of preparation S.A. War, Weather, Recession/Depression Big Risk, System Wide Risk, Collapse financial Institutions Non-Systemic: Individual Risk, Specified Risk Locust Invasion in Corn Crops: Hurts farmers, drives the price of corn up, but not much else Price Oil Rises: Pay more, but can prepare for it, and find alternate means of energy....
View Full Document
- Spring '10