Purchase Solution

Financial Markets

Not what you're looking for?

Ask Custom Question

What is the basic purpose of a financial market?

How do money and capital markets differ?

How do primary and secondary financial markets differ?

Describe the concept of market efficiency. What are the three different levels of market efficiency?

Purchase this Solution

Solution Summary

The solution describes the purpose of financial markets, the difference between money and capital markets, and primary and secondary markets. Market efficiency is conceptualized as well.

Solution Preview

The very basic purpose of a financial market is to have a system by which firms can raise capital and investors can realize a return.

Money markets trade short term assets such as commercial paper, currencies, Treasury bills (collectively, 'paper') whereas capital markets deal in equity and bonds which are more long term type of assets. Money markets are generally less volatile and, accordingly, provide a lower return for investors.

Primary markets ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Introduction to Finance

This quiz test introductory finance topics.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.