A call provision is a provision that gives the issuers of bonds (or other fixed income instrument) the right but not responsibility to repurchase the bonds or redeem a security prior to it maturing. A call provision will almost always favor the issuer rather than the investor.
it is correct.
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market. The equity segment of the exchange is different from other markets such as debt market and money markets.
The different types of money market instruments available for investment include Treasury bills, commercial paper, certificates of deposit, repurchase agreements, and money market funds.
please i'd like to know thecharacteristics of money market especially in Nigeria
The major money market instrument are treasury bills and bonds, federal agency.
Money market fund firms operate by combining many small investors' funds to accumulate the volume of money needed to buy money market instruments.
The capital market provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a of funds. The capital market as a whole consists of overnight to long-term funding. The short to medium end of the maturity spectrum is called the money market proper, and the long end is identified as the capital market. The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments. There has been an explosion of innovation in the creation and development of instruments in the money and capital markets since about 1960 in both debt and equity instruments. -Jennifer
The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments.
1. Money market generates higher rate of returns than holding cash. 2. Money Market funds are liquid 3. low risk The three fundamental characteristics of money market instruments are: (a) low default risk, (b) short-term to maturity, and (c) high marketability. These characteristics give money market instruments their characteristic of being low risk. Money market investors demand low-risk securities because their cash excesses are only temporary.
Some examples of money market instruments include commercial paper commodities such as bonds and treasury bills. They are highly liquid and they have maturity periods based on different agreements.
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market.
Money market instruments are investment choices that help optimize funds. Some of these might include Government of Canada Treasury Bills, Banker Deposit Notes and Commercial/Financial Paper.