Financial Markets

What is a financial market? Correct Answers - Represents the set of arrangements - Deals with the arrangements for trading financial claims - Facilitates the flow of funds and - Allows financing and investing What are the functions of financial markets? Correct Answers - To disseminate information - promote price discovery - To provide a trading mechanism - To enable the execution of agreements What are the 4 structures of Financial markets? Correct Answers 1. Debt and equity markets 2. Primary and secondary markets 3. Money and Capital markets 4. Organised and Over-the-counter markets Debt and Equity Markets Correct Answers - The Debt markets provide finance to borrowers - The equity market trades claims on the earnings of corporations Examples of Debt and Equity Markets Correct Answers - the government bond market , - the corporate bond market, - the money market and - the mortgage market Why is having a structure good? Correct Answers They help to categorize from other perspectives, no one is better than another Primary and secondary markets Correct Answers Primary markets