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14 Cards in this Set
- Front
- Back
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What is a financial Market?
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The arena through which funds flow
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What are the six different types of Financial Markets?
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primary secondary money capital foreign exchange derivative |
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how does the location of money markets differ from capital markets?
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money markets have no set location
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which of the capital market instruments is the largest in terms of dollar amount outstanding?
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corporate stocks, then mortgages, then corporate bonds
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what is the most risky type of market?
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derivative security market
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Once financial instruments are issued they are then traded in _____________________
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secondary markets
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what are the three major reasons that suppliers of funds would not want to purchase securities?
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monitoring costs liquidity costs price risk |
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depository institutions whose major assets are loans and major liabilities are deposits. loans are broader in range
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commercial banks
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depository institutions in the form of savings and loans, savings banks, and credit unions. they tend to concentrate their loans in one segment
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thrifts
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financial institutions that protect individuals and corporations from adverse events
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insurance companies
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financial institutions that underwrite securities and engage in related activities such as securities brokerage
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securities firms and investment banks
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financial intermediaries that make loans to both individuals and businesses. Rely on short and long-term debt for funding
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finance companies
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financial institutions that pool financial resources of individuals and companies and invest those resources in diversified portfolios of assets
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mutual and hedge funds
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financial institutions that offer savings plans through which fund participants accumulated savings during their working years before withdrawing them during their retirement years. exempt from current taxation
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pension funds
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