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Fin 122 Midterm 1a
Financial Institutions and Markets Ch. 1
Question | Answer |
---|---|
Bid-Ask Spread | The fee charged by a broker. |
Bonds | Long term debt obligations issued by corporations and government agencies to support their operations. |
Broker | A person or institution executing securities transactions between two parties. |
Capital Market | A market that facilitates the flow of long-term funds. |
Dealer | A person making a market in specific securities by adjusting his inventory of securities. |
Derivative Securities | Financial contracts whose values are derived from the values of underlying assets. |
Financial Market | A market in which financial assets (securities)can be bought or sold. |
Liquidity | The degree to which securities can easily be sold without a loss of value. |
Money Market | A market that facilitates the flow of short term funds with maturities of less than one year. |
Money Market Mutual Fund | A mutual fund concentrating in money market securities. |
Organized Exchange | A visible market place for secondary market transactions. |
Over The Counter (OTC) Market | A telecommunications network facilitating financial market transactions. |
Perfect Market | A market in which all information about any securities for sale in primary and secondary markets is continuously and freely available to investors. |
Primary Market | A market that facilitates the issuance of new securities. |
Privatization | The sale of government owned firms to individuals. |
Secondary Market | A market that facilitates the trading of existing securities. |
Stocks | Certificates representing partial ownership in a firm. |