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Instruments that are traded on Money Market: * Bankers' acceptance: A draft issued by a bank that will be accepted for payment, effectively the same as a cashier's check. * Certificate of deposit: A time deposit at a bank with a specific maturity date; large-denomination certificates of deposits can be sold before maturity. * Repurchase agreements:Short-term loans-normally for less than two weeks and frequently for one day-arranged by selling securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. * Commercial paper : Unsecured promissory notes with a fixed maturity of one to 270 days; usually sold at a discount from face value. * Eurodollar deposit: Deposits made in U.S. dollars at a bank or bank branch located outside the United States. * Treasury bills: Short-term debt obligations of a national government that are issued to mature in three to twelve months. For the U.S., see Treasury bills. * Money funds: Pooled short maturity, high quality investments which buy money market securities on behalf of retail or institutional investors. * Foreign Exchange Swaps: Exchanging a set of currencies in spot date and the reversal of the exchange of currencies at a predetermined time in the future.
What else can I help you with?
Where are capital markets?
securities with more than a year to maturity are traded
What are the instrument traded in money market or capital market?
Money Markets are the Markets where financial instruments with maturities of a year or less are traded. Examples of such securities are Treasury Bills, Commercial Paper and Short Term Certificates of Deposit. Capital Markets are the Markets on which financial instruments with maturities greater than one year are traded. Examples of Such securities are Treasury Notes, Treasury Bonds, Corporate Bonds and Equity (a.k.a. Stocks).
Discuss the benefits accruing to a company that is traded in the public securities market?
There are financial benefits gained by a company that is traded in the public securities market because capital is raised from investors. Also, a company gains more public awareness from being traded in the public securities markets.
How can we differentiate between money and capital markets?
Money markets are where short-term debt securities are traded, typically with maturities of one year or less. Capital markets, on the other hand, deal with long-term securities like stocks and bonds with maturities exceeding one year.
Identify the major types of securities traded in the securities markets?
shares ,derivatives
What is trade volume?
Trade volume refers to the amount of securities that are traded within a given period. This is a term which is commonly used in the capital markets.
What are the two kinds of market?
capital market .... where the long term securities are traded money market ..... where the securities having shorter period or duration of maturity are traded
What are the major instruments traded in capital markets?
U.S. securities; U.S. agency securities; corporate bonds; state and local government bonds; mortgage instruments; financial guarantees; securitized instruments; broker-dealer loans; foreign, international, and global bonds; and eurobonds.
What are the Capital market instruments in Pakistan?
The following are the Money Market instruments in Pakistan: 1) Pakistan Investment Bonds (PIBs) 2) Federal Investment Bonds (FIBs) 3) Market Treasury Bills (MTBs) 4) Term Finance Certificates (TFCs) 5) Certificate Of Investments (COIs) 6) Certificate Of Deposits (CODs) 7) Commercial Papers (CPs) 8) Foreign exchange platform (forex)
What are the key differences between the capital market and the money market?
The key difference between the capital market and the money market is the duration of the securities traded. The capital market deals with long-term securities like stocks and bonds, while the money market deals with short-term securities like treasury bills and commercial paper.
What is the difference between the capital market and the money market?
The capital market is where long-term securities like stocks and bonds are traded, while the money market deals with short-term debt securities like Treasury bills and commercial paper.
What is used to describe the ability of government securities to be traded quickly and easily?
Liquidity is used to describe how quickly securities can be traded.
