types of financial markets Flashcards
1
Q
types of financial markets
A
-money markets: financial assets with maturity date of a year or less (bonds/interbank lending)
-capital markets: primary(brand new bonds)/secondary (new bonds and new shares bought and sold again. greater than a year
-currency markets: spot: buy at current. future: buy at given but given in the future
2
Q
difference between debt and equity capital
A
-debt: pays back an interest rate
-equity capital: stake, return is a dividend