Podcast
Questions and Answers
Which type of securities are traded in capital markets?
Which type of securities are traded in capital markets?
- Government securities only
- Foreign exchange securities
- Debt and equity securities (correct)
- Short-term securities
What is the typical maturity period for long-term securities in capital markets?
What is the typical maturity period for long-term securities in capital markets?
- More than a year (correct)
- Less than a year
- Exactly one year
- Varies depending on the investor
Who are the major suppliers of stocks in the capital market?
Who are the major suppliers of stocks in the capital market?
- Corporations for stocks and government for bonds (correct)
- Banks and financial institutions
- Government for stocks and bonds
- Individual investors only
What characteristic makes long-term securities riskier in comparison to short-term instruments?
What characteristic makes long-term securities riskier in comparison to short-term instruments?
Which market is considered part of the capital markets along with stock and bond markets?
Which market is considered part of the capital markets along with stock and bond markets?
What distinguishes capital markets from money markets?
What distinguishes capital markets from money markets?
What is the function of Treasury Notes and Bonds?
What is the function of Treasury Notes and Bonds?
Which bond type sells at a discount?
Which bond type sells at a discount?
What type of price risk are Treasury Notes and Bonds subject to?
What type of price risk are Treasury Notes and Bonds subject to?
What is the purpose of the Bond Market?
What is the purpose of the Bond Market?
How are T-notes and T-bonds different from T-bills?
How are T-notes and T-bonds different from T-bills?
When are T-notes and T-bonds considered to be risk-free investments?
When are T-notes and T-bonds considered to be risk-free investments?
What is the main purpose of LGU bonds in the Philippines?
What is the main purpose of LGU bonds in the Philippines?
What does a bond indenture typically specify?
What does a bond indenture typically specify?
How are derivative securities defined?
How are derivative securities defined?
What is the primary function of derivative securities market?
What is the primary function of derivative securities market?
Why are LGU bonds considered a potential tool for development?
Why are LGU bonds considered a potential tool for development?
In what way do LGU bonds differ from corporate bonds?
In what way do LGU bonds differ from corporate bonds?
Where does a one-on-one transaction take place between a borrower and a lender?
Where does a one-on-one transaction take place between a borrower and a lender?
In which market are big loans secured using real property, buildings, or big machineries?
In which market are big loans secured using real property, buildings, or big machineries?
Where does the trading involve an independent third party matching prices on orders received to buy and sell a particular security?
Where does the trading involve an independent third party matching prices on orders received to buy and sell a particular security?
Which market provides the structure for exchanging money between different countries and determining exchange rates?
Which market provides the structure for exchanging money between different countries and determining exchange rates?
What type of contracts give the holder the right to buy something in the future at a specified price?
What type of contracts give the holder the right to buy something in the future at a specified price?
What are agreements between two parties for exchanging periodic cash flows based on an underlying instrument or price?
What are agreements between two parties for exchanging periodic cash flows based on an underlying instrument or price?
What is the main difference between the spot market and the futures market?
What is the main difference between the spot market and the futures market?
What type of contracts are traded in the forward market?
What type of contracts are traded in the forward market?
In which markets can forward contracts be found?
In which markets can forward contracts be found?
Where are stock options traded?
Where are stock options traded?
When is a stockholder given stock options by a corporation?
When is a stockholder given stock options by a corporation?
What happens if a stockholder does not want to exercise their stock options?
What happens if a stockholder does not want to exercise their stock options?
