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Assignment sir cepida

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  • 1. Market - An actual or nominal place where forces of demand and supply operate, and wherebuyers and sellers interact (directly or through intermediaries) to trade goods, services, orcontracts or instruments, for money or barter.Markets include mechanisms or means for (1) determining price of the traded item, (2)communicating the price information, (3) facilitating deals and transactions, and (4) effectingdistribution. The market for a particular item is made up of existing and potential customers whoneed it and have the ability and willingness to pay for it.http://www.businessdictionary.com/A public place where buyers and sellers make transactions, directly or via intermediaries. Alsosometimes means the stock markethttp://www.investorwords.com/MarketsThe concepts of exchange and relationships lead to the concept of a market. A market is the setof actual and potential buyers of a product.1). Originally a market was a place where buyers and sellers gathered to exchange goods (suchas a village square).2). Economists use the term to designate a collection of buyers and sellers who transact in aparticular product class (as in the housing market).3). Marketers see buyers as constituting a market and sellers constituting an industry.4). Modern economies operate on the principle of division of labor, where each personspecializes in producing something, receives payment, and buys needed things with this money.Thus, modern economies abound in markets.5). Marketers are keenly interested in markets.Zainbooks.comA capital market is simply any market where a government or a company (usually a corporation) canraise money (capital) to fund their operations and long term investment. Selling bonds and selling stockare two ways to generate capital, thus bond markets and stock markets (such as the Dow Jones) areconsidered capital markets.economicsabout.comA market in which individuals and institutions trade financial securities.Organizations/institutions in the public and private sectors also often sell securities on the capitalmarkets in order to raise funds. Thus, this type of market is composed of both the primary andsecondary markets.Both the stock and bond markets are parts of the capital markets. For example, when acompany conducts an IPO, it is tapping the investing public for capital and is therefore using thecapital markets. This is also true when a countrys government issues Treasury bonds in the bond
  • 2. market to fund its spending initiativeshttp://www.investopedia.comA market that issues new securities on an exchange. Companies, governments and other groupsobtain financing through debt or equity based securities. Primary markets are facilitated byunderwriting groups, which consist of investment banks that will set a beginning price range fora given security and then oversee its sale directly to investors. Also known as new issue market.The primary markets are where investors can get first crack at a new security issuance. Theissuing company or group receives cash proceeds from the sale, which is then used to fundoperations or expand the business. Exchanges have varying levels of requirements which must bemet before a security can be sold.Once the initial sale is complete, further trading is said to conduct on the secondary market,which is where the bulk of exchange trading occurs each day. Primary markets can see increasedvolatility over secondary markets because it is difficult to accurately gauge investor demand for anew security until several days of trading have occurred.A market where investors purchase securities or assets from other investors, rather than from issuingcompanies themselves. The national exchanges - such as the New York Stock Exchange and the NASDAQare secondary markets.Secondary markets exist for other securities as well, such as when funds, investment banks, or entitiessuch as Fannie Mae purchase mortgages from issuing lenders. In any secondary market trade, the cashproceeds go to an investor rather than to the underlying company/entity directly.A newly issued IPO will be considered a primary market trade when the shares are first purchased byinvestors directly from the underwriting investment bank; after that any shares traded will be on thesecondary market, between investors themselves. In the primary market prices are often setbeforehand, whereas in the secondary market only basic forces like supply and demand determine theprice of the security.In the case of assets like mortgages, several secondary markets may exist, as bundles of mortgages areoften re-packaged into securities like GNMA Pools and re-sold to investors.http://www.investopedia.comfinancial markets Markets for sale and purchase of stocks (shares), bonds, bills of exchange, commodities, futures andoptions, foreign currency, etc., which work as exchanges for capital and credit.money market Network of banks, discount houses, institutional investors, and money dealers who borrow and lendamong themselves for the short-term (typically 90 days). Money markets also trade in highly liquidfinancial instruments with maturities less than 90 days to one year (such as bankers acceptance,
  • 3. certificates of deposit, and commercial paper), and government securities with maturities less thanthree years (such as treasury bills), foreign exchange, and bullion. Unlike organized markets (such asstock exchanges) money markets are largely unregulated and informal where most transactions areconducted over phone, fax, or online. Long-term borrowing and lending markets are called capitalmarkets.http://www.businessdictionary.comA segment of the financial market in which financial instruments with high liquidity and veryshort maturities are traded. The money market is used by participants as a means for borrowingand lending in the short term, from several days to just under a year. Money market securitiesconsist of negotiable certificates of deposit (CDs), bankers acceptances, U.S. Treasury bills,commercial paper, municipal notes, federal funds and repurchase agreements (repos).http://www.investopedia.comThe money market is used by a wide array of participants, from a company raising money byselling commercial paper into the market to an investor purchasing CDs as a safe place to parkmoney in the short term. The money market is typically seen as a safe place to put money due thehighly liquid nature of the securities and short maturities, but there are risks in the market thatany investor needs to be aware of including the risk of default on securities such as commercialpaper.The money market is used by a wide array of participants, from a company raising money byselling commercial paper into the market to an investor purchasing CDs as a safe place to parkmoney in the short term. The money market is typically seen as a safe place to put money due thehighly liquid nature of the securities and short maturities, but there are risks in the market thatany investor needs to be aware of including the risk of default on securities such as commercialpaper.Read more: http://www.investopedia.com/terms/m/moneymarket.asp#ixzz2CitTecGwBroad term describing any marketplace where buyers and sellers participate in the trade of assetssuch as equities, bonds, currencies and derivatives. Financial markets are typically defined byhaving transparent pricing, basic regulations on trading, costs and fees and market forcesdetermining the prices of securities that trade.Some financial markets only allow participants that meet certain criteria, which can be based onfactors like the amount of money held, the investor’s geographical location, knowledge of themarkets or the profession of the participant.Financial markets can be found in nearly every nation in the world. Some are very small, with
  • 4. only a few participants, while others – like the New York Stock Exchange (NYSE) and the forexmarkets – trade trillions of dollars daily.Most financial markets have periods of heavy trading and demand for securities; in these periods,prices may rise above historical norms. The converse is also true – downturns may cause pricesto fall past levels of intrinsic value, based on low levels of demand or other macroeconomicforces like tax rates, national production or employment levels.Information transparency is important to increase the confidence of participants and thereforefoster an efficient financial marketplace. http://www.investopedia.com

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