| 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. |
Ch.18 LTI-MA 509
