11. Types of financial markets Aa Aa Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place You are preparing to take an exam in your finance class, and you've been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded: Type of Market Description of Transaction You go to an auto dealer and buy a new car. You drive the car home immediately after making the payment Physical asset markets Financial asset markets Description of Transaction Type of Market An oil trader buys contracts at the New York Mercantile Exchange, and he locks in the current futures price of heating oil for delivery in the winter season Type of Market Description of Transaction Sheila saves $10,000 and buys a certificate of deposit (CD) that will mature in six months Description of Transaction Type of Market The state of California issues new bonds to the public with an investment bank serving as the underwriter to raise capital