1.For financial institutions, the key suppliers of funds and the key demanders of funds are individuals, businesses, and governments. 2.In general, individuals are net suppliers of funds, while businesses and governments are net demanders of funds. 3. Financial markets provide a mechanism that allows suppliers of funds and demanders of funds to transact business. 4. The primary market is the financial market in which securities are initially issued; the only market in which the issuer is directly involved in the transaction. Secondary markets are financial markets in which preowned securities (those that are not new issues) are traded. 5. Financial institutions actively participate in the financial markets as both suppliers and demanders of funds. 6. Broker markets are securities exchanges on which the two sides of a transaction, the buyer and seller, are brought together to trade securities. Dealer markets are markets in which the buyer and seller are not brought together directly but instead
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This note was uploaded on 02/27/2012 for the course FIN 132 taught by Professor Afda during the Spring '12 term at Centenary College New Jersey.