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| a market in which assets are traded at prices that equal their values, based upon all available information |
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| A market in which assets trade at prices that do not reflect all available information |
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| the time and cost necessary to sell an asset at its true value |
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| discrepancies between the information held by the buyer and the seller of an asset |
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| assets that directly produce or help to produce scarce resources. Examples include tangible assets such as land, buildings, and equipment, or intangible assets such as trademarks, patents, and human productivity |
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| assets that represent claims on the cash flows from real assets. examples include stocks and bonds issued by corporations to raise capital and finance investments. |
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| Financial institutions, such as banks, savings, and loans, and pension funds, that serve as a conduit between people and financial assets |
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| an economic climate characterized by a decline in the value of money |
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| financial securities issued by corporations and sold to investors for the first time. The market where primary securities are sold is the primary market. |
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| Financial securities already in existence and traded among investors. Trading in existing financial securities occurs in the secondary market |
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| A market where individuals, known as dealers, buy and sell using their own inventory. The dealer earns a commission equal to the difference between the price the buyer pays and the price the seller reveals. Middle men. |
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| markets conducted at centralized locations. In auction markets, an auctioneer records bids and offer prices and notifies the two parties when trades match |
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| Markets where sellers and buyers trade directly among themselves |
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| a market in which the buyer and seller employ an agent, called a broker, who matches them for a fee |
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| the contract between the principal and agent stating how the agent will be paid |
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