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Questions and Answers
The MATURITY of a debt instrument is the number of ______ until its expiration date.
The MATURITY of a debt instrument is the number of ______ until its expiration date.
years (term)
Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
interest
Equity instruments, such as common stock, are considered long-term securities because they have no ______ date.
Equity instruments, such as common stock, are considered long-term securities because they have no ______ date.
maturity
The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a ______ claimant.
The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a ______ claimant.
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Financial markets are an important source of capital for individuals who wish to buy homes or ______.
Financial markets are an important source of capital for individuals who wish to buy homes or ______.
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Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
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The primary market refers to the original sale of securities by governments and ______.
The primary market refers to the original sale of securities by governments and ______.
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Corporations engage in two types of primary market transactions: public offerings and ______ placements.
Corporations engage in two types of primary market transactions: public offerings and ______ placements.
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The secondary market refers to the stock market or exchange, where securities are sold to the ______.
The secondary market refers to the stock market or exchange, where securities are sold to the ______.
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Securities brokers and dealers are crucial to a well-functioning secondary market. Brokers are agents of investors who match buyers with sellers of ______.
Securities brokers and dealers are crucial to a well-functioning secondary market. Brokers are agents of investors who match buyers with sellers of ______.
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Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. the primary market is where the ______ uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. the primary market is where the ______ uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue.
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Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
Signup and view all the answers
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to ______.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to ______.
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Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Financial markets and financial intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. This is known as the function of ______.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Financial markets and financial intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. This is known as the function of ______.
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Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices is known as ______.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices is known as ______.
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Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds is known as the function of ______.
Financial markets are the meeting place for people, corporations and institutions that either need money or have the money to lend or invest. In a broad context, the financial markets may exist as a vast global network of individuals and financial institutions that may be lenders, borrowers or owners of public companies worldwide. Financial Markets in Action Primary Market - When a corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue. Secondary Market - After the securities are sold to the public (institutions and individuals) they are traded in the secondary market between investors. Function of Financial Market Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. Asset valuation - Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property. This is important not only to those buying and selling businesses, but also to regulators Arbitrage - Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds is known as the function of ______.
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The secondary market refers to the stock market or exchange, where securities are sold to the ______.
The secondary market refers to the stock market or exchange, where securities are sold to the ______.
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Corporations engage in two types of primary market transactions: public offerings and ______ placements.
Corporations engage in two types of primary market transactions: public offerings and ______ placements.
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The primary market is where the ______ uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue.
The primary market is where the ______ uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue.
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When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
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Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
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Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
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Equity instruments, such as common stock, are considered long-term securities because they have no ______ date.
Equity instruments, such as common stock, are considered long-term securities because they have no ______ date.
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Buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices is known as ______.
Buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices is known as ______.
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Financial markets and financial intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. This is known as the function of ______.
Financial markets and financial intermediaries have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds. This is known as the function of ______.
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Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including ______ and principal payments.
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The MATURITY of a debt instrument is the number of ______ until its expiration date.
The MATURITY of a debt instrument is the number of ______ until its expiration date.
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The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a ______ claimant.
The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a ______ claimant.
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Securities brokers and dealers are crucial to a well-functioning secondary market. Brokers are agents of investors who match buyers with sellers of ______.
Securities brokers and dealers are crucial to a well-functioning secondary market. Brokers are agents of investors who match buyers with sellers of ______.
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The secondary market refers to the stock market or exchange, where securities are sold to the ______.
The secondary market refers to the stock market or exchange, where securities are sold to the ______.
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Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and ______ them.
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When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
When the securities are sold to the public (institutions and individuals) they are traded in the ______ between investors.
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Study Notes
Debt Instruments
- Maturity of a debt instrument is the number of years until its expiration date.
- Debt instruments like bonds and mortgages involve the borrower paying fixed peso amounts at regular intervals, including interest and principal payments.
Equity Instruments
- Equity instruments, such as common stock, are considered long-term securities because they have no expiration date.
- The main disadvantage of owning a corporation's equities rather than its debt is that an equity holder is a junior claimant.
Financial Markets
- Financial markets are the meeting place for people, corporations, and institutions that either need money or have the money to lend or invest.
- Financial markets provide price discovery, a way to determine the relative values of different items, based upon the prices at which individuals are willing to buy and sell them.
- Financial markets are an important source of capital for individuals who wish to buy homes or invest.
Primary Market
- The primary market is where the corporation uses financial markets to raise new funds, the sale of securities is said to be made in the primary market by way of a new issue.
- Corporations engage in two types of primary market transactions: public offerings and private placements.
Secondary Market
- The secondary market refers to the stock market or exchange, where securities are sold to the investors.
- Securities brokers and dealers are crucial to a well-functioning secondary market.
- Brokers are agents of investors who match buyers with sellers of securities.
Functions of Financial Markets
- Financial markets (bond and stock markets) and financial intermediaries (banks, insurance companies among others) have the basic function of getting people together by moving funds from those who have a surplus of funds to those who have a shortage of funds.
- This is known as the function of financial intermediation.
- Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices.
- Market prices offer the best way to determine the value of a firm or of the firm’s assets, or property.
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Description
Test your knowledge about financial markets and institutions with this quiz. Explore topics such as primary markets, global networks, and the role of individuals and institutions in financial markets.
