Financial Markets and Intermediaries: Terms and Definitions, Quizzes of Finance

Download Financial Markets and Intermediaries: Terms and Definitions and more Quizzes Finance in PDF only on Docsity! TERM 1 Money Market DEFINITION 1 short term securities with a maturity less than one year TERM 2 capital market DEFINITION 2 long term securities with a maturity of more than one year TERM 3 primary market DEFINITION 3 new securities are being purchased TERM 4 secondary market DEFINITION 4 existingsecuritiesare being resold TERM 5 financial intermediaries DEFINITION 5 Financial intermediation consists of -channeling funds between surplus and deficit agents-. A financial intermediary is a financial institution that connects surplus and deficit agents. TERM 6 six types of financial intermediaries DEFINITION 6 1. commercial banks2. insurance companies3. financial companies4. pension funds5. thrift institutions6. investment companies TERM 7 Listed Exchange Markets DEFINITION 7 operated at a designated location with requirements on the types of securities listed TERM 8 OTC markets DEFINITION 8 over the counter markets; no centralized business location; series of networks TERM 9 BID-ASK spread DEFINITION 9 difference between the ask price and the lower bid price TERM 10 NYSE DEFINITION 10 larger companies; exchange listed TERM 21 LIBOR DEFINITION 21 london interbank offer rate: interest rate at which banks in eurocurrency lend to each other TERM 22 direct exchange rate quote DEFINITION 22 $/euro TERM 23 indirect exchange rate quote DEFINITION 23 euro/$ TERM 24 spot rates DEFINITION 24 rate of exchange for currency bought/sold for immediate delivery TERM 25 forward rates DEFINITION 25 bought/sold for delivery at some future date TERM 26 forward contract DEFINITION 26 not liqiud; between two individuals that are known; any future time period and quantity TERM 27 futures contract DEFINITION 27 exchange trade agreement; standardized amounts at a standardized maturity date TERM 28 call option DEFINITION 28 option to buy foreign currency TERM 29 put option DEFINITION 29 option to sell foreign currency TERM 30 HPR DEFINITION 30 return on holding an investment "(ending price - beginning price - distributionsreceived) divided by beginning price"