Capital market: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Baseby2@msn.com m (To bring the word Bonds into the definition) |
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Capital markets trade longer-term financial instruments (usually with a life of more than one year) and equity. | Capital markets trade longer-term financial instruments commonly known as Bonds(usually with a life of more than one year) and equity. | ||
Primary capital markets are concerned with the initial raising of capital. | Primary capital markets are concerned with the initial raising of capital: that is selling new bonds and equity. | ||
Secondary markets allow the original investors to sell on their investments to others. | Secondary markets allow the original investors to sell on their investments to others, and this requires the bonds or equity are listed on exchanges. | ||
Yields on instruments with maturities of more than one year are commonly quoted on an effective annual rate basis. | Yields on financial instruments with maturities of more than one year are commonly quoted on an effective annual rate basis. | ||
(An exception to this being bonds with semi-annual interest payments, which are more commonly quoted on a semi-annual basis.) | (An exception to this being bonds with semi-annual interest payments, which are more commonly quoted on a semi-annual basis.) | ||
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* [[Semi-annual basis]] | * [[Semi-annual basis]] | ||
[[Category:Technical_skills]] | |||
[[Category:Corporate_financial_management]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 11:16, 8 November 2018
Capital markets trade longer-term financial instruments commonly known as Bonds(usually with a life of more than one year) and equity.
Primary capital markets are concerned with the initial raising of capital: that is selling new bonds and equity.
Secondary markets allow the original investors to sell on their investments to others, and this requires the bonds or equity are listed on exchanges.
Yields on financial instruments with maturities of more than one year are commonly quoted on an effective annual rate basis.
(An exception to this being bonds with semi-annual interest payments, which are more commonly quoted on a semi-annual basis.)
