Discussion Question(s) #1 Please reply to this thread by or before Wednesday, day 2 with your answers! What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient? Why or why not? What is the capital market? “A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets” (Investopedia.com, 2009). The capital market refers to all institutions and procedures that provide for transactions having maturity periods that extend beyond one year. This includes term loans and financial leases, corporate equities, and bonds. The capital markets are the organized security exchanges and the over-the-counter market. Capital markets are those where (1) investors can buy and sell stock without incurring any transaction costs, such as
This is the end of the preview. Sign up
access the rest of the document.
This note was uploaded on 02/21/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.