FIN 521 Chapter Notes - Chapter 4: S&P 500 Index, Tokyo Stock Exchange, Otc Markets Group
Document Summary
Market: is the means through which buyers and sellers are brought together to aid in the transfer of goods and/or services. A market does not need to have a physical location. The market does not necessarily own the goods or services involved. A market can deal in any variety of goods and services. Primary markets: where new securities are sold, where new issues of bonds, preferred stocks, or common stock are sold by government units, municipalities, or companies to acquire new capital. Secondary markets: where outstanding securities are bought and sold. Subdivided into three segments based on their original maturities. Treasury bills are negotiable, non-interest-bearing securities with original maturities of one year or less; medium-term bonds have 3- to 10- year maturities; and long-term bonds are typically issued with initial maturities over 10 years. Nearly all the provinces, territories, and municipalities borrow money to finance public works and other such investments.
