lecture 1 part 2

Question 1

what is the stock market

Answer 1

where investors go to trade equity’s securities

Question 2

what is the bond market

Answer 2

where investors go to trade debt securities

Question 3

who are bonds issued by

Answer 3

corporations or governments

Question 4

what are debt instruments

Answer 4

you are lending money for a set period and charging interest

Question 5

what are primary markets

Answer 5

issue a new securities by the issuer (borrower) in return for cash from investors (lender)

Question 6

what is a secondary market

Answer 6

environment that permits investors (lenders) to buy and sell existing securities

Question 7

what are exchanges

Answer 7

trading of stock

Question 8

what is the canadian exchanges

Answer 8

tsx / tsvx and candian securities exchange

Question 9

what is the worldwide

Answer 9

us: nyse / nasdaq
shanghai stock exchange and hong kong stock exchange
bombay stock exchange and national stock exchange

Question 10

what are over the counter trades

Answer 10

securities not listed on an exchange

Question 11

what is an example of an over the counter trade

Answer 11

debt instruments and stocks not on exchanges

Question 12

market capitalization equation

Answer 12

= # of shares outstanding * share price

Question 13

what is a securities

Answer 13

tradable financial asset (claims that one individual has on another)