Group 1
Stocks and bonds are an example of this:
What is a Financial Instrument?
A bank or insurance company are great examples of a:
What is a financial institution?
You can buy stocks and bonds in this type of market:
What are financial markets?
A pool of assets wrapped together as part of one big investment is know as:
What are asset backed securities?
Economic resources that are owned by a business are known as:
What are assets?
Debt securities like bonds are traded in this financial market.
What are bond markets?
This person brings buyers and sellers together.
What is a broker?
A financial market where financial instruments are traded in a centralized location.
What is a centralized exchange?
A security pledged for the repayment of a loan.
What is collateral?
The other person or business on the other side of a financial contract.
What is a counterparty?
An agent who buys and sells securities for their inventory.
What is a dealer?
This financial market buys and sells debt instruments like bonds, mortgages, etc.
What is the debt market?
Assets which derive their value from other underlying assets.
What is a derivative?
Borrowers borrow funds directly from lenders in the financial markets.
What is direct finance?
Equities like stocks are bought in this market?
What is the equity market?
A collection of stocks and bonds, and other investments that are traded on exchanges, but are traded more like individual stocks
What are exchange traded funds?
This financial instrument represents ownership in a company.
What is a stock?
A flow of funds going from savers to borrowers through intermediaries.
What is indirect finance?
A negotiator who acts as a link between two parties.
What is an intermediary?
Money or a debt that you owe is known as a:
What is a liability?
Debt instruments that mature in less than one year are bought and sold in the:
What is a money market?
Bonds that represent claims to all or part of the monthly mortgage payments from the pools of mortgage loans made by leaders to borrowers to help them purchase residential property.
What are mortgage backed securities?
A collection of financial assets.
What is a portfolio?
Stocks issued for the very first time are sold in this market?
What is the primary market?
Stocks that have been previously issued are sold in this market?
What is the secondary market?