| Term | Definition |
|---|
| bond | a debt security that promises to make payments periodically for a specified period of time |
| stock | represents a share of ownership in a corporatio |
| direct fiance | Borrowers borrow funds directly from lenders by selling them securities |
| indirect fiance | lenders put their money into financial intermediaries, lenders to borrowers |
| Finanical Intermediaries | institutions that borrow funds from people who saved and in turn made loans to others |
| Finanical markets | markets in which funds are transfered from people who have an excess of available funds to people who have a short age |
| debt | bond or mortage, long or short term, no say, must pay debt holders before equity |
| equity | stock, Long term, more say in business, benefit directly from business |
| Primary Market | new bonds and stocks are sold to initial buyers, Not well known by public |
| secondary market | securities that have been previously issued can be resold, Investment bank. |
| Money market | only short term debt instruments are traded |
| Capital Market | longer term debt and equity are traded |
| Money Market Instruments 5 | Treasury Bill, Certificates of deposit, Commerical paper, Repurchase agreement, Federal Funds |
| Capital Market Instruments 5 | Stocks, Mortgages, Corporate Bonds, US Government Securities, Consumer and Bank Commercial Loans |
Combine with other sets
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