Differentiate money markets from capital markets

 Money market is a flow of short –term capital funds a short term liquidity
transactions good for different financial institutions, for individual investors,
also for government. Which fluctuates for those businesses need cash. While
Capital markets is a long term debt transactions it could be in the side off
primary markets or secondary markets.
Give and describe the types of money markets

 commercial paper is a short-term debt obligation of a private-sector or

government-sponsored corporation
 bankers’ acceptances, is a promissory note issued by a non-financial firm to a
bank in return for a loan. Having a maturity of less than six months.
 treasury bills, often referred to as T-bills, are securities with a maturity of one
year or less, issued by national governments.
 local government notes, are issued by, provincial or local governments and by
agencies of these governments such as schools authorities and transport
commissions.

 Time deposits, can also be called as certificates of deposit or CDs, is an interest-

bearing bank deposits that can be withdraw along 30 days.

Give 5 types of bonds and explain

Debentures it is an unsecured long-term debt and backed only by the reputation and
financial stability of the corporation.
Subordinate Debentures it is a claims of bondholders and honored after secure
debts.
Income Bonds
It requires interest payments when it is earned and no interest payment cannot cause
bankruptcy.

Mortgage Bonds
Is a bond secured by a lien on real property.
Treasury Bonds it is a kind of bond that carry the “full-faith-and-credit” backing of
the government and investors.
Distinguish ordinary from preferred stock.
Ordinary equity shares is a form of long-term equity it has a voting rights and
represents the ownership of the firm. Preferred share is a class of equity shares it has
no voting rights .
 

What is the highest and bond rating? explain

AAA- is the highest bond ra

If you have the change of becoming a shareholder of a corporation, do you want to own
ordinary shares or preferred shares? Expalin.