What Is A Market Flashcards
(14 cards)
What is a market ?
Where buyers and sellers trade stocks, bonds, currencies, commodities
What are the 4 key features of a market
Capital allocation, price discovery, liquidity, risk sharing
What are the 5 main types of financial markets ?
Stock market, bond market, forex, derivatives market, money market
Who are the 4 participants in markets ?
Market traders, institutional investors, governments, corporations
What is capital allocation?
Choosing where to invest money for best results
What is price discovery ?
How the market finds a fair price
What is liquidity ?
How fast and smooth I can trade an instrument
What is risk sharing ?
Spreading losses
What is a stock market ?
Trade shares
What is a bond market ?
Trade debt instruments
What is a derivatives market ?
Trade futures and options contracts
What is a money market ?
Trade short term debt instruments
What are ETF’s ?
A fund that holds a collection of assets like stocks, bonds, currency
What is market speculation?
making a profit from future price changes
