| 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. |
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