Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

23 Cards in this Set

  • Front
  • Back
Spot Markets
The markets in which assets are nought or sold for "on-the-spot" delivery.
Futures Markets
The market in which participants agree today to buy or sell an asset at the same future date.
Money Markets
The financial markets in which funds are borrowed or loaned for short periods (less than a year).
Capital Markets
The financial markets for stocks and for intermediate- or long-term debt (one year or longer).
Primary Markets
Markets in which corporations raise capital by issuing new securities.
Secondary Markets
Markets in which securities and other financial assets are traded among investors after they have been issued by corporations.
Private Markets
Market in which transactions are worked out directly between two parties.
Public Markets
Markets in standarized contracts are traded on organized exchanges.
Any financial asses whose value is derived from the value of some other "underlying" assett
Investment Banking House
An organization that underwrites and ditributes new investment securities and helps businesses obtain financing.
Commercial Bank
Traditional department store of finance serving a variety of savers and borrowers.
Financial Services Corporation
A firm that offers a wide range of financial services, including investment banking, brokerage operations, insurance, and commerical banking.
Mutual Funds
Organizations that pool investor funds to purchase financial instruments and thus reduce risks through diversification.
Money Market Funds
Mutual funds that invet in short-term, low-risk securities and allow investors to write checks against their accounts.
Physical Location Exchanges
Formal organizations having tangible physical locations that conduct auction markets in designated ("listed") securities.
Over-the-Counter (OTC) Market
A large collection of brokers and dealers connected electronically by telephones and computers, that provides for trading in unlisted securities.
Dealer Market
Includes all facilities that are needed to conduct security transactions not conducted on the physical location exchanges.
Closely Held Corporation
A corporation that is owned by a few individuals who are typically associated with the firm's management.
Publicly Owned Corporation
A corporation that is owned by a relatively large number of individuals who are not actively involved in its management.
Going Public
The act of selling stock to the public at large by closely held corporation or it principal stockholders.
Initial Public Offering (IPO)Market
The market for stocks of companies that are in the process of going public.
Efficient Markets Hypothesis (EMH)
The hypothesis that securities are typically in equilibrium --that they are fairly priced in the sense that the price reflects all publicly available information on each security.
Behavioral Finance
Incorporates elements of cognitve psychology into finance in an effort to better understand how individuals and entire markets respond to different circumstances.