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Chapter 2

Financial Markets and Instruments

Chapter 2

Financial Markets and Instruments

Financial markets are ecosystems where buyers and sellers trade assets like stocks, bonds, currencies, and derivatives. Individual investors and large …
The money market is a financial system where debt instruments are traded with a maturity of one year or less. The instruments mainly include treasury …
Money market instruments provide investors with relatively safe and liquid investment options while allowing borrowers to access short-term financing, …
The Capital market is a financial market where long-term securities such as stocks, bonds, and derivatives are traded. It is a platform for investors, …
Capital market instruments are financial assets that allow investors to participate in trading long-term securities. These instruments are usually traded …
Bonds are fixed-income debt securities that represent a loan made by an investor to a borrower. Bonds are financial instruments that governments and …
Bonds are a form of debt security that provides fixed income that organizations issue to investors to raise capital. For example, Amazon issues a …
Bonds are of various types to meet the needs of investors and the financial requirements of the industry. Government bonds, such as United States Treasury …
A stock represents a share of a company's ownership, with the possibility for profits and voting rights for shareholders. There are two types of …
Common stock is a type of equity ownership in a corporation. Shareholders of common stock have voting rights and are entitled to potential dividends, but …
Preferred stock is a type of equity ownership in a company offering investors fixed dividends with no voting rights. For example, when investors purchase …
Stocks symbolize a proportional stake in the issuing company, reflecting the holder's partial ownership. They are primarily categorized into common …
The capital market is a financial system where long-term debt and equity securities, such as stocks, are traded to facilitate economic growth by providing …
The secondary market is a financial platform where investors buy and sell securities previously issued in the primary market. It enables trading existing …