Security Markets Provide Liquidity

Question: Security Markets

Answer: Consists of a myriad of securities from government bonds to corporate common stock.

Question: What influences security markets?

Answer: Interest rates, investor confidence, economic growth, and global crises

Question: Types of Security Markets

Answer: Money Markets, Capital Markets, International Capital Markets

Question: Money markets

Answer: short-term markets comprising of securities with maturities of one year or less. (Treasury bill, commercial paper, negotiable certificates of deposits.)

Question: Capital Markets

Answer: Long term markets consisting of securities having maturities greater than one year. (Bonds, common stock, preferred stock, convertible securities- these securities comprise a firm’s capital structure)