Equity Investment

Question 1

Financial assetsinclude

Answer 1

Financial assetsinclude securities (stocks and bonds), derivative contracts, and currencies.

Question 2

Real assetsinclude

Answer 2

Real assetsinclude real estate, equipment, commodities, and other physical assets.

Question 3

Money markets –

Answer 3

Money marketsrefer to markets for debt securities with maturities of one year or less.

Question 4

Capital markets –

Answer 4

Capital marketsrefer to markets for longer-term debt securities and equity securities that have no specific maturity date.

Question 5

Traditional investment marketsrefer to those for … and ..

Answer 5

Traditional investment marketsrefer to those for debt and equity.

Question 6

Alternative marketsrefer to those for …

Answer 6

Alternative marketsrefer to those for hedge funds, commodities, real estate, collectibles, gemstones, leases, and equipment.

Question 7

Short-term fixed-income securities generally have a maturity of …

Answer 7

less than one or two years;

Question 8

long-term term maturities are longer than …

Answer 8

longer than 5-10 years (teh definicial is loose)

Question 9

…. are generally long term, whereas….are intermediate term

Answer 9

bondsare generally long term, whereasnotesare intermediate term

Question 10

… refers to short-term debt issued by firms.

Answer 10

Commercial paper

Question 11

Governments issue…and banks issue… (for short-term debt )

Answer 11

Governments issuebillsand banks issuecertificates of deposit.

Question 12

repurchase agreements

Answer 12

Inrepurchase agreements, the borrower sells a high-quality asset and has both the right and obligation to repurchase it (at a higher price) in the future. Repurchase agreements can be for terms as short as one day.