Investment Markets

Notes by Oswaldo

Capital market, money market, mutual funds, primary/ secondary markets)

-Capital market: money is loaned and/or borrowed for more than a year.
Money market: money is loaned and/or borrowed for less than a year.

-Mutual funds: company that sells stocks in itself and uses the profits to buy stocks and bonds issued by other companies.

-Primary markets: market in which only the original issuer can sell or repurchase a financial asset. (loan is directed between government and investor)

-Secondary markets: market in which financial assets can be sold to someone other
than the original issuer. (bond can be sold over and over. Traded b/w investors)