What are the differences between primary and secondary securities markets?
(Ch. 1 Q #11, P.9-10) Primary securities markets are markets in which the initial offering of debt and equity securities to the public occurs. Secondary securities markets are markets where the transfer of existing debt and equity securities between investors occurs. 9. Briefly describe the differences between the money and capital markets. (Ch. 1 Q #12, P.11) Money markets are markets where debt instruments of one year or less are traded. Capital markets are markets for debt securities with maturities in excess of one year and corporate stocks. 10. Identify the four types of major financial markets. (Chapter 1, Question #13, Answer, Page 9-10) 1. Securities markets are physical locations or electronic forums where debt and equity securities are sold and traded. 2. Mortgage markets are markets in which mortgage loans, backed by real property in the form of buildings and houses, are originated and sometimes trade. 3. Derivatives markets facilitate the purchase and sale of derivative sec
