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Unformatted text preview: and behavior of business firms Classification of Financial Classification of Financial Markets
2. Debt markets (bonds, mortgages)
Shortterm (maturity < 1 year) Money market
Longterm (maturity > 1 year) Capital market
Equity markets Common stock Preferred stock Classification of Financial Classification of Financial Markets
► Primary Market
New security issues sold to initial buyers ► Secondary Market
Securities previously issued are bought and sold Classification of Financial Classification of Financial Markets
Trades conducted in central locations
e.g. BSKL, NYSE,..etc ► OvertheCounter Dealers at different locations buy and sell through telecomunications e.g. Mesdaq Financial Intermediaries
► Engage in process of indirect finance
► More important source of finance than securities market ► Needed because of t...
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This document was uploaded on 03/14/2014.
- Spring '14
- Financial Markets