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Transcript

  • 1. FINANCIAL MARKETS Money Markets Capital Markets
  • 2.
    • Definition of Financial Markets:
    • A mechanism that allows people to trade in financial securities, commodities and other items of value.
    • They facilitate:
    • The raising of capital
    • The transfer of risk
    • International trade
  • 3.
    • The components of Financial Markets are:
        • Money Markets
        • Financial Markets
  • 4. Definition of Money Markets
    • Component of financial markets for short term assets: maturities of less than one year.
    • Characteristics of Money Markets
    • They are generally very safe investments but
    • with relatively very low returns.
  • 5.
    • Time Deposits – Certificates of Deposit
    • Repurchase Agreements
    • Short Term Loans
    • Commercial Papers
    • Federal Agency Short Term Securities
    • Federal Funds
    • Municipal Notes
    • Treasury Bills
    • Money Funds
    • Foreign Exchange Swaps
    Money Markets Instruments
  • 6. Definition of Capital Markets
    • It is a market for securities where business and government can raise long –term funds.
    • It is a market where money is provided for periods longer than one year .
  • 7. Charachteristics of Capital Markets:
    • They are considered to have a component of higher risk than Money market.
    • As such they are expected to have a higher return.
  • 8. c
    • Bond Market
    • Fixed Income
    • Corporate Bond
    • Government Bond
    • Municipal Bond
    • High Yield Debt
    Capital Markets Instruments
  • 9.
    • Stock Market
    • Stock
    • Preferred Stock
    • Common Stock
    • Registered Share
    • Voting Share
    • Stock Exchange
    Capital Markets Instruments