Financial Markets
Commissioned agents who facilitate trade by locating a seller (or buyer) to complete the desired transaction.
Brokers
Distribution of reward from a portion of the company’s earnings and are paid to a class of its shareholders.
Dividends
The notional underlying amount that the issuer borrows and, in most cases, the amount to be repaid to the bondholder on the maturity date. It is also known as the par value, face value, nominal value/amount, or redemption value/amount.
Principal
Are financial instruments whose value is based on or “derived” from the value of some other instrument (referred to as the “underlying”).
Derivatives
Are generally considered to be assets that are not mainstream ("traditional") assets such as debt and equity.
Alternative Assets
Market that facilitates issuance of new debt or equity securities.
Primary Market
The date the payment is made by the company to the holders which are registered on the company's books as at record date.
Payment Date
Most common type of bonds. Pay a single fixed rate of interest on a periodic basis over the term of the bond and repay the notional principal at a single maturity date.
Bullet bonds/Straights
Traded on exchanges rather than negotiated bilaterally between counterparties.
Futures
An alternative asset which is considered to offer inflation-proofed returns in the long run.
Real Estate
This type of banking distribute debt and equity securities in both primary and secondary markets.
Investment Banking
Preferred stock that is like a callable bond, the issuer has the option to buy the stock back
Redeemable Stock
The primary mode of short-term debt issuance for borrowers such as banks, finance companies, and nonfinancial corporates. The bulk of issuance is by borrowers that can attract the highest credit ratings from the major agencies.
Commercial Paper
A contract in which one party agrees to exchange cash flows with another party at specified future dates – nothing is “bought” or “sold.”
Swap
A pooled investment vehicle that is privately organized, administered by professional investment managers, and not widely available to the public.
Hedge Funds
_______ markets allow end-users (manufacturers or distributors) to purchase the raw or partly-refined materials required for their business from a market consisting of the offerings of numerous producers.
Commodities
Any event that brings material change to a company and affects its stakeholders. These events are generally approved by the company's board of directors; shareholders are permitted to vote on some events.
Corporate Actions
Issued by states, cities, special-purpose districts, public utility districts, school districts, publicly-owned airports and seaports, and other government-owned entities who seek to raise cash to fund various projects.
Municipal Bonds
A contract that gives the holder the right, but not the obligation, to enter into some form of future transaction at a point in the future (maturity or expiration date) at a predetermined level (strike or exercise price).
Options
A form of equity investment in businesses, is not freely tradable on a public exchange. It is used by investors looking to start up, expand, or buy a stake in a business, or in leveraged buy-outs/buy-ins.
Private Equity
In this kind of market, a central entity provides facilities for transactions to be executed and outlines the rules/regulations surrounding these transactions.
Exchange-Traded Market
The creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
Spin-offs
A financial security such as a bond or note which is collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. For investors, these are an alternative to investing in corporate debt.
Asset-backed Security
An ___________ derivative is a financial instrument whose value is based on equity movements of the underlying asset.
Equity
Is comprised of highly heterogeneous assets, with no two having identical attributes. It is an amalgamation of various sectors and includes: roads, bridges, ports, airports, power generation and distribution, water and gas utilities, communications
Infrastructure