Stuff

Question 1

Types of Financial markets

Answer 1

Money market: short term market
Capital: long term market
Primary: Where companies initially sell new security issues (debt or equity)
Secondary: where owners of securities can sell them to other investors

Question 2

Types of financial markets - others terms:
Marketability
Liquidity
Brokers
Dealers

Answer 2

Marketability: the ease which a security can be sold and converted into cash

Liquidity: the ability to convert an asset into cash quickly without loss of value

Brokers: market specialists who bring buyers and sellers together for a sale to take place

Dealers: ‘make markets’ for securities and bear risk