Financial markets are classified as money or capital markets and primary or secondary markets.

a. Short-term securities with maturities of one year or less are traded in money markets.

Long-term securities have maturities of more than one year and are traded in capital markets.

b. New securities are traded in the primary markets. Existing securities are traded in the secondary markets, such as the New York Stock Exchange, the American Stock Exchange, and the over-the-counter market. V=96