Introduction to Financial Markets - Quick Revision Sheet

Quick revision

Key terms

• Financial market: market where financial claims, assets and securities are traded.
• Debt market: trades government bonds and corporate debentures.
• Equity market: trades equity shares of companies.
• Money market: short term claims of one year or less.
• Capital market: long term claims of more than a year.
• Primary (new issue) market: first sale of securities by issuers.
• Secondary market: trade in already issued securities.
• Spot market: immediate delivery and payment.
• Futures market: delivery and payment at a pre-determined future time.
• Over-the-counter market: decentralised, outside the stock exchange.

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