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:

Description of Transaction

Type of Market

Mr$.$ and Mrs$.$ Smith buy a new house in Walnut Creek, California. They paid the entire amount, $$800,000,$ in cash.

Description of Transaction

Type of Market

An oil trader buys contracts at the New York Mercantile Exchange, and he locks in the

Futures markets

current futures price of heating oil for delivery in the winter season.

Description of Transaction

Type of Market

Sheila saves $$10,000$ and buys a certificate of deposit $($CD$)$ that will mature in six months. $q,$

Description of Transaction

Type of Market

Martha Stewart sold $3,928$ shares of ImClone stock on December $27,2001.$

Primary markets

Source:

Foxnews.com, Jan. $20,2004.$