Catamio, Nicolette C.

BSA221B
Research Assignment
Financial Market

Money Market:

• Money market funds: Investment funds that make investments in short-term, premium debt
instruments like CDs, Treasury bills, and commercial paper are known as money market mutual
funds. They provide a low-risk means for investors to get a respectable return on their investment.
• Treasury Bills: These are short-term government securities that have maturities of one year to a few
days. They are regarded as being very liquid and low-risk.
• Certificates of Deposit (CDs) are time deposits with fixed interest rates and maturities that banks
and other financial organizations offer. They are regarded as investments with little risk.
• Commercial Paper: Secured promissory notes with a short maturity date that are issued by well-
regarded companies. Usually, they take less than 270 days to mature.
• Repurchase Agreements (Repos) are short-term loans secured by securities issued by the
government. Financial institutions frequently employ them to meet their short-term funding
requirements.

Capital Market:

• Stocks: Securities that indicate ownership in a firm are called stocks, or equity. Buying stocks is
done with the expectation of capital gains and/or dividend payments.
• Exchange-traded funds: Investment funds that are traded on stock exchanges and hold assets like
stocks, bonds, or commodities are known as exchange-traded funds, or ETFs. ETFs blend the
characteristics of equities and mutual funds.
• Bonds: Fixed-income instruments that symbolize a loan from an investor to a borrower, usually the
government or a business. Bonds return the principal amount at maturity together with periodic
interest payments.
• Preferred Stocks: Securities that combine elements of bonds and stocks. Compared to common
shareholders, preferred shareholders are entitled to a larger part of assets and dividends.
• Commodities: These are tangible goods that are exchanged on commodity exchanges, such as
metals, gold, oil, and agricultural products. Through mutual funds, exchange-traded funds, and
futures contracts, investors can get exposure to commodities.