Principles of Finance · free preview
An Overview of US Financial Markets
US financial markets organize into money markets for short-term claims and capital markets for long-term stocks and bonds, with primary markets issuing new securities and secondary markets trading existing ones, all overseen by regulators and reporting systems.
1. Money markets and capital markets
Money markets and capital markets
2. Primary and secondary, again at scale
Primary and secondary, again at scale
3. The players and the plumbing
The players and the plumbing
4. Why history belongs in this course
Why history belongs in this course
5. The two market segments
Which pairing correctly sorts US financial markets by maturity?
6. Money market instruments
Which instrument belongs to the money market rather than the capital market?
7. The secondary market's gift to issuers
Why does a deep, liquid secondary market lower a firm's cost of capital in the primary market?
8. The underwriters' role
What role do investment banks play in the primary capital market?
9. The scale fact
What does the enormous scale of US financial markets imply for the global economy?
10. Why study market history
According to the lesson, why does the historical record belong in a valuation course?
11. The shortest safe rate
What three-word instrument, the money market's benchmark, names short-term US government borrowing? Answer in lowercase.
12. The issuance market
What two-word term names the market where new securities are sold by issuers to investors for the first time? Answer in lowercase.
13. The intermediary risk-taker
What one-word term names the investment bank's function of buying a new issue and reselling it at risk? Answer in lowercase.
14. The near-money label
What two-word adjective describes money market instruments, emphasizing their safety and quick convertibility to cash? Answer in lowercase.
Practice this interactively
Free account · instant grading · spaced review that schedules itself.
Start this course for free