CH1 - Spring 2011

CH1 - Spring 2011 - FINANCIAL MARKETS TRADE FINANCIAL...

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FINANCIAL MARKETS TRADE FINANCIAL INSTRUMENTS PRIMARY vs SECONDARY MARKETS MONEY vs CAPITAL MARKETS
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PRIMARY MARKETS FACILITATE THE ISSUANCE OF NEW SECURITIES PROVIDE FUNDS TO THE INITIAL ISSUER OF SECURITIES
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SECONDARY MARKETS FACILITATE THE TRADING OF EXISTING SECURITIES INITIAL BUYERS OF SECURITIES RESELL THEM BEFORE MATURITY NYSE, AMEX, NASDAQ SEE FIGURE 1-1 (p. 4)
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MONEY MARKETS TRADE SHORT-TERM DEBT INSTRUMENTS MOST U.S. MONEY MARKETS ARE OVER-THE-COUNTER (OTC) MARKETS
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MONEY MARKET TREASURY BILLS DIRECT OBLIGATION OF THE U.S. GOVERNMENT COMMERCIAL PAPER SHORT TERM CORPORATE IOUs CERTIFICATES OF DEPOSIT (CDs) TIME DEPOSITS ISSUED BY BANKS
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MONEY MARKET FEDERAL FUNDS (FFs) LOANS MADE BY BANKS TO EACH OTHER (BANK DEPOSITS HELD AT FEDERAL RESERVE BANKS) REPURCHASE AGREEMENTS (REPOs) SALE OF SECURITIES WITH AN AGREEMENT TO REPURCHASE THEM AT A LATER DATE EURODOLLARS x U.S. DOLLARS DEPOSITED OVERSEAS
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CAPITAL MARKETS TRADE LONG-TERM EQUITY AND DEBT SECURITIES
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This note was uploaded on 02/23/2011 for the course FIN 3080 taught by Professor Mercadose during the Spring '10 term at UCM.

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CH1 - Spring 2011 - FINANCIAL MARKETS TRADE FINANCIAL...

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