Types of financial markets

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Types of financial markets

1:

An investor buys $10,000 worth of gold at a certain price today.

2:

Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months.

3: Google filed its initial public offering worth $2.7 billion in 2004.

4: A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is

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Answer 1

Answer #1

1:

Karl spends $1,500 to buy Google stock options through his online brokerage account.

Financial asset markets

2:

An investor buys $10,000 worth of gold at a certain price today.

Spot markets

3:

Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months.

Money markets

4:

Google filed its initial public offering worth $2.7 billion in 2004.

Source: CNNmoney.com, Apr. 30, 2004.

Primary markets

5: A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank ishedging

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Answer 2

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Types of financial markets

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