Chapter 2

Question 1

spot markets

Answer 1

the markets in which assets are bought or sold for on the spot delivery

Question 2

futures markets

Answer 2

the markets in which participants agree today to buy or sell an asset at some future date

Question 3

money markets

Answer 3

the financial markets in which funds are borrowed or loaned for short periods

Question 4

capital markets

Answer 4

the financial markets for stocks and for intermediate or long term debt

Question 5

primary markets

Answer 5

markets in which corporations raise capital by issuing new securities

Question 6

secondary markets

Answer 6

markets in which securities and other financial assets are traded among investors after they have been issued by corporations

Question 7

private markets

Answer 7

markets in which transactions are worked out directly between two parties

Question 8

public markets

Answer 8

markets in which standardized contracts are traded on organized exchanges

Question 9

derivatives

Answer 9

any financial asset whose value is derived form the value of some other underlying asset