Capital Markets Overview

Anything that confers value or benefit to its owner. Capital is the lifeblood of companies and economies.

Venues where funds are exchanged between buyers and sellers in the form of equity securities, bonds or other financial services. Suppliers of capital include households and institutions. Users of capital include households and institutions.

<p>Primary markets are where new equity (stock) and bonds are issued and sold to investors. Secondary markets are where existing securities are traded by investors. (B)</p> Signup and view all the answers

<p>Public markets are where securities are offered and sold to the public (retail), unrestricted trading. Private markets have restrictions on offering, sales, and trading (Private placements - usually for companies that can't go public). (A)</p> Signup and view all the answers

<p>The ability to provide the lifeblood to an economy or a company (availability of capital - essential markets). Large public markets are essential to giving liquidity to the securities that trade there. Market liquidity refers to how quickly an investment can be sold. Financial liquidity refers to the ability to meet financial obligations.</p> Signup and view all the answers

Anything that confers value or benefit to its owner.

Monetary & non-monetary resources for growth, including Economic, Business, Working, Equity, Debt, and Trading capital.

Venues where funds are exchanged between buyers and sellers in the form of securities.

Where new equity and bonds are issued and sold to investors.

Where existing securities are traded by investors.

Securities offered to the public; unrestricted trading.

Trading is restricted and usually involves private placements.

The ability to quickly meet financial obligations; availability of capital.

Securities and Exchange Commission; regulates trading and market conduct.

Regulates public companies that invest primarily in securities.

Sale of securities not to the public; does not need SEC registration.

Safe harbor for private placements; exempt from '33 Act, targeting sophisticated investors.

Individuals or entities meeting specific financial criteria; requires greater financial knowledge.

Unlimited capital, but restricts general solicitation; requires prior financial disclosures.

Allows general solicitation; capital limit remains, but can only include accredited investors.

Allows public offerings with less disclosure; caps on raised capital.

Bonds created to restructure sovereign debt, trade freely and backed by collateral.

Proposed method for restructuring sovereign debt; faced many enforcement problems.

Allows offers and sales of securities made offshore, not subject to US registration.

The perceived risk of lending to emerging markets based on their economic stability.

Capital moved abroad by wealthy individuals from emerging markets due to distrust in local systems.

Period in Latin America affected by debt crises and economic instability in the 1980s.

Process of swapping loans for bonds, leading to immediate trading.

Collateral backing Brady bonds to ensure payments and stability for bondholders.

A negotiable instrument for foreign company's stock traded outside of the US.

A negotiable certificate representing shares of a non-US company, traded in US dollars.

In sovereign debt restructuring, creditors refusing to accept terms can stall proceedings.

Aimed to extend payment periods and finance growth for debt recovery.

Proposal for debt forgiveness and conversion of loans to tradable bonds.