Term
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Definition
| - participants who receive more money than they spend such as investors |
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Term
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Definition
| - participants who spend more money than they receive, such as borrowers |
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Term
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Definition
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Term
| types of financial markets |
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Definition
- money market
- capital market
- primary market
- secondary market |
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Term
| capital market securities |
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Definition
- bonds
- mortgages and mortgage-backed securities
- stocks |
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Term
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Definition
- speculation using an underlying asset
- risk management and hedging |
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Term
| impact of internet on the valuation process |
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Definition
- more timely pricing
- more accurate pricing
- more informative pricing |
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Term
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Definition
- markets are efficient when security prices reflect all available information
- behavioral finance: application of psychology to make financial decisions; explains why markets are not always efficient |
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Term
| financial market regulation |
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Definition
- disclosure
- regulatory response to financial scandals |
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Term
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Definition
- commercial banks
- savings institutions
- credit unions |
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Term
| nondepository institutions |
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Definition
- finance companies
- mutual funds
- securities firms
- insurance companies
- pension funds |
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