Capital Markets Flashcards
What are the Capital Markets?
The Capital Markets refers to the primary and secondary markets.
What are the Primary Markets?
The Primary Markets are where new securities are issued.
What are the Secondary Markets?
The Secondary Markets are where existing securities are bought and traded.
What are the products traded in the Capital Markets?
The products traded in the Capital Markets are debt securities, equity securities, derivatives, foreign exchange and cryptocurrency.
What are Securities?
Securities are tradable financial instruments used to make money in the markets. There are two main types of securities known as equity securities and debt securities.
What are Equity Securities?
Equity secures are common stocks.
What are Debt Securities?
Debt Securities are loans.
What are Common Stocks?
Common Stocks are equity securities in which shareholders receive profit after all of the company’s assets liquidate and the company’s debt is paid off.
What are Government Bonds?
Government bonds are debt securities issued by a government to cover costs for operational spending and financial obligations.
What are Municipal Bonds?
Municipal Bonds are debt securities issued by local, county and state governments to finance public works projects.
