Anonymous
Feb 8
Explain six instrument of capital market and money market?
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Feb 8
Capital Market Instruments:
1. Stocks: Stocks represent ownership in a company and are traded on stock exchanges. Investors buy stocks in the hope of earning dividends and capital appreciation.
2. Bonds: Bonds are debt instruments issued by governments, municipalities, and corporations to raise capital. Investors who purchase bonds are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at maturity.
3. Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investors buy shares in the mutual fund, and the fund's performance is based on the performance of its underlying assets.
4. Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on stock exchanges like individual stocks. They offer investors exposure to a diversified portfolio of assets, such as stocks, bonds, or commodities.
5. Derivatives: Derivatives are financial contracts whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. Examples of derivatives include options, futures, and swaps. They are used for hedging, speculation, and arbitrage purposes.
6. Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-generating real estate properties. Investors can buy shares in REITs, which provide them with exposure to the real estate market without directly owning properties.
Money Market Instruments:
1. Treasury Bills: Treasury bills are short-term debt instruments issued by governments to finance their short-term cash needs. They have a maturity of less than one year and are considered low-risk investments.
2. Commercial Papers: Commercial papers are unsecured, short-term debt instruments issued by corporations to meet their short-term funding requirements. They are typically issued for a period of 1 to 270 days and are usually bought by institutional investors.
3. Certificates of Deposit (CDs): CDs are time deposits offered by banks and financial institutions. They have a fixed maturity date and pay a fixed interest rate. CDs are considered low-risk investments.
4. Repurchase Agreements (Repos): Repos are short-term borrowing arrangements where one party sells securities to another party with an agreement to repurchase them at a later date. Repos are commonly used by banks and financial institutions to manage their short-term liquidity needs.
5. Money Market Funds: Money market funds are mutual funds that invest in short-term, low-risk securities such as Treasury bills, commercial papers, and CDs. They aim to provide investors with a stable value and easy access to their funds.
6. Banker's Acceptances: Banker's acceptances are short-term, negotiable instruments issued by a bank on behalf of its customers. They are used to facilitate international trade transactions and are considered relatively safe investments.
1. Stocks: Stocks represent ownership in a company and are traded on stock exchanges. Investors buy stocks in the hope of earning dividends and capital appreciation.
2. Bonds: Bonds are debt instruments issued by governments, municipalities, and corporations to raise capital. Investors who purchase bonds are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at maturity.
3. Mutual Funds: Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investors buy shares in the mutual fund, and the fund's performance is based on the performance of its underlying assets.
4. Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on stock exchanges like individual stocks. They offer investors exposure to a diversified portfolio of assets, such as stocks, bonds, or commodities.
5. Derivatives: Derivatives are financial contracts whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. Examples of derivatives include options, futures, and swaps. They are used for hedging, speculation, and arbitrage purposes.
6. Real Estate Investment Trusts (REITs): REITs are companies that own, operate, or finance income-generating real estate properties. Investors can buy shares in REITs, which provide them with exposure to the real estate market without directly owning properties.
Money Market Instruments:
1. Treasury Bills: Treasury bills are short-term debt instruments issued by governments to finance their short-term cash needs. They have a maturity of less than one year and are considered low-risk investments.
2. Commercial Papers: Commercial papers are unsecured, short-term debt instruments issued by corporations to meet their short-term funding requirements. They are typically issued for a period of 1 to 270 days and are usually bought by institutional investors.
3. Certificates of Deposit (CDs): CDs are time deposits offered by banks and financial institutions. They have a fixed maturity date and pay a fixed interest rate. CDs are considered low-risk investments.
4. Repurchase Agreements (Repos): Repos are short-term borrowing arrangements where one party sells securities to another party with an agreement to repurchase them at a later date. Repos are commonly used by banks and financial institutions to manage their short-term liquidity needs.
5. Money Market Funds: Money market funds are mutual funds that invest in short-term, low-risk securities such as Treasury bills, commercial papers, and CDs. They aim to provide investors with a stable value and easy access to their funds.
6. Banker's Acceptances: Banker's acceptances are short-term, negotiable instruments issued by a bank on behalf of its customers. They are used to facilitate international trade transactions and are considered relatively safe investments.
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Anonymous
Mar 27
What is difference between open market and negotiated market
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