Chapter 4 - Financial Markets

2 1 2 debtmarketsbondsmortgages

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Unformatted text preview: and behavior of business firms Classification of Financial Classification of Financial Markets ► 1. 2. ► 1. 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 ► Exchanges 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 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.

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