The Capital Market - Securities Flashcards
1
Q
Types of securities (3)
A
- Liquidity
- Fixed Income security
- Equity security (shares)
2
Q
Lquidity - Money market
A
A liquid asset is a type of asset that can be rapidly converted into cash while keeping its market value.
3
Q
Caracteristics
A
Only short-term fixed-income securities with a term of one year or less trade in the money market.
4
Q
Types of liquidity (4)
A
- Bonds
- Bankers acceptances
- Commercial paper
- GIC
5
Q
Fixed Income security
A
The terms of a fixed-income security include a promise by the issuer to repay the maturity value, or principal, on the maturity date, and to pay interest either at stated intervals over the life of the security or at maturity.
6
Q
Fixed Income security types (
A
- ## Bonds (3)