Question

name two distinct financial market and describe the kind of assets traded in eacn?

name two distinct financial market and describe the kind of assets traded in eacn?

Homework Answers

Answer #1

The two distinct financial markets are the Capital market and Money market.

Capital market:

Capital market is the place where financial assets having maturities exceeding 1 year are traded. The assets traded are:

Equity securities -- Common stocks and preferred stocks.

Debt securities -- Corporate bonds, Government long term securities etc.

Money market:

It is the place where securities with maturities of 1 year or less are traded. They include, Treasury bills, commercial paper, bills of exchange, deposits, etc.

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