FI 455 Lecture Notes - Lecture 8: Money Market Fund, Morgan Stanley, Citigroup
Document Summary
Physical asset a tangible or real market asset such as wheat, oil, autos, etc. Financial asset markets deal with stocks, bonds, notes, and mortgages. Spot market assets are bought and sold for "on the spot" delivery. Futures market buyer/seller agree today to buy/sell asset at a future date. Money market funds are borrowed/loaned for short periods (less than one year) Capital market for stocks and longer-term debt (longer than a year) Primary market firms raise capital by issuing new securities. Public market standardized contracts are traded on organized exchanges. Markets provide savers with returns on their money, which gives them money in the future. Markets provide users of capital with funds to finance their investment projects. A financial product that derives its value from the value of underlying assets through options, futures, forwards and swaps. Msufcu member money is loaned to other members at usually very low interest rates.
