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

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2
Q

difference between debt and equity capital

A

-debt: pays back an interest rate
-equity capital: stake, return is a dividend

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