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Chapter 2

Financial Markets and Instruments

Introduction to Financial Markets
Introduction to Financial Markets
Financial markets are ecosystems where buyers and sellers trade assets like stocks, bonds, currencies, and derivatives. Individual investors and large ...
Money Market
Money Market
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
Money Market Instruments
Money market instruments provide investors with relatively safe and liquid investment options while allowing borrowers to access short-term financing, ...
Capital Market
Capital Market
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
Capital Market Instruments
Capital market instruments are financial assets that allow investors to participate in trading long-term securities. These instruments are usually traded ...
Introduction to Bonds
Introduction to Bonds
Bonds are fixed-income debt securities that represent a loan made by an investor to a borrower. Bonds are financial instruments that governments and ...
Features of Bonds
Features of Bonds
Bonds are a form of debt security that provides fixed income that organizations issue to investors to raise capital. For example, Amazon issues a ...
Types of Bonds
Types of Bonds
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 ...
Introduction to Stock
Introduction to Stock
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
Common Stock
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
Preferred Stock
Preferred stock is a type of equity ownership in a company offering investors fixed dividends with no voting rights. For example, when investors purchase ...
Common Stock vs. Preferred Stock
Common Stock vs. Preferred Stock
Stocks symbolize a proportional stake in the issuing company, reflecting the holder's partial ownership. They are primarily categorized into common ...
Types of Capital Market: Primary Market
Types of Capital Market: Primary Market
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 ...
Types of Capital Market: Secondary Market
Types of Capital Market: Secondary Market
The secondary market is a financial platform where investors buy and sell securities previously issued in the primary market. It enables trading existing ...
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