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Financial Markets and Institutions
Financial Markets and Institutions
Financial Markets and Institutions
FINANCIAL MARKET
F.M is a market in which financial assets
(securities) such as stocks and bonds
can be purchased or sold.
DEFICIT UNITS
DEBT SECURITIES
Equity securities
(Also called stocks) represent equity or
ownership in the firm.
PRIMARY MARKETS
Secondary Markets
Facilitate the trading of existing securities,
which allows for a change in the ownership of
the securities.
LIQUIDITY
Note: 1
1) Treasury securities are liquid because they are
frequently issued by the Treasury, and there are
many investors at any point in time who want to
invest in them.
NOTE: 2
TREASURY BILLS
CERTIFICATES OF DEPOSITS
BONDS
MORTGAGES
COMMERCIAL MORTGAGES
STOCKS
Derivative Securities
CREDIT UNIONS
FINANCE COMPANIES
MUTUAL FUNDS
BROKER