Unit 15: Financial markets Flashcards
Definition of Financial market:
Financial market is the market in which financial instrument are traded: debt, bonds, shares, etc.
Function of financial market:
The function of financial market is channeling funds from household, firms, G who have saved surplus funds to those that have a shortage of funds.
What is short-term debt instruments ( Thế nào là công cụ nợ ngắn hạn)?
Short-term debt instruments have a maturity of less than one year.
What is debt market (Thị trường nợ)?
The debt market is a financial market in which debt instruments (mostly bonds) are traded.
What is equity market? (Thị trường vốn cổ phần)
The equity market is a financial market in which equity instruments (mostly shares) are traded.
What is primary market? (Thị trường sơ cấp)
A primary market is a financial market in which new issues of a security are sold to initial buyers (mostly banks or brokers) by the corporation or G agency (securities issuers) in order to borrow/raise more funds.
What is secondary market? (Thị trường thứ cấp)
A secondary market is a financial market in which securities that have been previously issued can be resold.
What is exchanges? (Sở giao dịch)
Exchanges are the securities markets which have a single location and fixed hours to conduct trades.
What is OTC markets? (Thị trường CK phi tập trung)
OTC markets are markets which have no single location to conduct trades, but transactions are made via through electronic means of communication/ via telephone or computer link.
What is money market? (Thị trường tiền tệ)
The money market is a financial market in which only short-term debt instruments are traded.
What is capital market? (Thị trường vốn)
The capital market is a financial market in which long-term debts and equity instruments are traded.
SUMMARY
There are some main ideas in Unit 15: function of financial market and its structure.
To begin with definition of financial market, it is the market in which financial instrument are traded: debt, bonds, shares, etc. The function of financial market is channeling funds from household, firms, G who have saved surplus funds to those that have a shortage of funds.
In addition, it talks about structure of financial markets such as: debt market & equity market; primary market & secondary market; exchange & OTC market; money market & capital market.
